Breaking: Deaton Clarifies—LINQTO Hearing Tomorrow Won’t Touch Ripple’s $18M XRP Sales

Ripple’s legal saga takes another twist as attorney John Deaton shuts down speculation. Tomorrow’s LINQTO hearing? Not about those $18M XRP transactions—despite what armchair lawyers on Crypto Twitter insist.

The Real Focus

Deaton’s tweetstorm confirms the August 6 proceeding centers on LINQTO’s separate motion, not Ripple’s alleged securities violations. Yet another case of crypto drama outpacing facts—water is wet, and regulators move at glacial speeds.

Why It Matters

With XRP holders clinging to every legal whisper, clarity cuts through the noise. Bonus reality check: If the SEC spent as much energy streamlining compliance as it does on paperwork, maybe crypto wouldn’t need so many lawyers.

Attorney John Deaton recently shared an important update on X (formerly Twitter) about the ongoing LINQTO case. He said he’s asking the court to apply something called a “Constructive Trust” in the case related to the DIP Loan. This WOULD help make sure that no one unfairly benefits and that any money or assets go to the people who rightfully deserve them.

What’s Happening in the LINQTO Case?

The main issue being discussed in court on August 6 is about moving the case from Texas to Delaware. This motion was filed by a shareholder group called Sapien Group, who wants the case to be heard in a different state.

However, Deaton has filed a separate class action lawsuit against LINQTO’s founder, William Sarris. He claims the company sold unlicensed securities in July without giving investors enough information, which misled thousands of users. His goal is to help those users get their money back.

Some people on social media thought that the August 6 hearing was about Deaton’s objections to a $18 million Ripple sale or the DIP loan. But Deaton clarified that those issues would actually be discussed at a later hearing on August 17.

Deaton’s Support For Ripple

While dealing with LINQTO, Deaton is also continuing to back Ripple Labs in their legal fight with the U.S. Securities and Exchange Commission (SEC). The SEC previously said that Ripple had raised $1.3 billion by selling XRP as an unregistered security.

He has filed many legal briefs in Ripple’s favor and continues to defend XRP holders. The case has been going on for nearly five years, and a key update is expected when the SEC files a status report on August 15.