Ripple in Danger? Garlinghouse Finally Speaks Out on Explosive Linqto Scandal

Ripple CEO Brad Garlinghouse breaks his silence—just as the Linqto scandal threatens to engulf the crypto giant. Here's what you need to know.

The Fallout: More Than Just Bad PR?

Garlinghouse's abrupt pivot to damage control suggests deeper turbulence ahead for Ripple. Legal analysts whisper about regulatory dominoes—because nothing says 'innovation' like a fresh subpoena.

XRP Holders Brace for Impact

The market's already twitchy. Will this spark another sell-off, or is Ripple's army of retail bagholders too numb to react? (Spoiler: Wall Street sharks are circling either way.)

Garlinghouse's Gambit: Leadership or Lip Service?

The CEO's statement drips with corporate defiance—but behind closed doors, you can bet the lawyers are billing overtime. Classic crypto: disrupt first, explain never.

One thing's clear: in the high-stakes poker game of crypto, Ripple just got dealt another wild card. And the house always wins.

In a new development, Linqto, an investment platform known for offering shares of private companies like Ripple, is reportedly heading toward bankruptcy. According to a Wall Street Journal report on June 30, the firm is also under investigation by both the U.S. Securities and Exchange Commission (SEC) and the Justice Department over its sales practices.

Linqto made a name for itself by giving everyday investors access to private stock deals typically reserved for the wealthy. But now, with legal troubles mounting, Ripple’s CEO Brad Garlinghouse has stepped in to clear up confusion surrounding Ripple’s connection to the firm.

Garlinghouse addressed concerns from the XRP community and Ripple supporters who feared their Ripple shares, bought through Linqto, might be at risk. In a social media post, he clarified,

“Linqto owns 4.7 million shares of Ripple, purchased solely on the secondary market from existing Ripple shareholders — never directly from Ripple,” he said.

Okay, it seems my post has raised a few more questions – first off, XRP and shares of Ripple are very different things. This post is ONLY about shares in Ripple. Linqto is a very separate company that bought shares in Ripple from some of our existing shareholders. It should be…

He explained that Ripple has never had a business relationship with Linqto and that the company stopped approving secondary market purchases through Linqto in late 2024 amid growing concerns.

After his post gained traction, Garlinghouse followed up to explain the difference between XRP tokens and Ripple shares, stressing that this issue only involves Ripple shares held by Linqto, not the cryptocurrency itself.

“I have no idea how Linqto managed its clients or sold ‘representative units’ of Ripple shares. What I can confirm is that Linqto owns those 4.7 million shares, and the good news is that their value has increased over time,” Garlinghouse added.

While Linqto’s future remains uncertain, with talk of bankruptcy and ongoing federal investigations, Garlinghouse’s message offered some reassurance to Ripple investors. The WSJ also reported that the company could be heading toward a possible restructuring.

For now, Ripple continues to distance itself from the troubled investment firm, making it clear that its own operations and share value remain unaffected by Linqto’s legal and financial troubles.