Linqto Doubles Down: Holds 4.7M XRP Shares Despite Regulatory Scrutiny

Defiant or calculated? Linqto just confirmed its 4.7 million XRP stake remains untouched as regulators circle.

HODLing Through the Storm

While lesser investors panic-sell at the first whiff of legal uncertainty, the private investing platform isn’t flinching. Their XRP trove—worth roughly $2.3M at current prices—stays put despite an ongoing probe. Classic 'buy when there’s blood in the streets' play, or just institutional-grade stubbornness?

Regulatory Roulette

No details yet on whether the holdings are part of the investigation—but in crypto, guilty until proven solvent. The SEC’s war on 'unregistered securities' has turned XRP into a recurring courtroom drama since 2020. Linqto’s move reads like a bet that Ripple’s legal team will outmaneuver the feds... again.

Finance’s Dirty Little Secret

Let’s be real—this is why Wall Street hates crypto. Traditional finance needs 27 compliance sign-offs to buy a coffee. Meanwhile, Linqto shrugs and holds $2M in 'controversial' assets like it’s a Tuesday. The future’s decentralized, folks. Adapt or get rekt.

Linqto Responds to Misinformation About Ripple Shares

The controversy began when Matt Rosendin, CEO of Capsign, posted a viral thread on X (formerly Twitter), claiming that a private equity fund being started by his firm had taken ownership of the 4.7 million Ripple shares originally held by Liquidshares. The post sparked significant attention and concern among Linqto users and Ripple investors.

In response, Linqto issued a public clarification on July 7. The company stated clearly that the Ripple shares in question remain under the ownership of Liquidshares and have not been transferred or sold to any third party.

“A thread posted on X by Mr. Rosendin falsely indicated that a private equity fund being established by Capsign holds the 4.7 million of Ripple shares held by Liquidshares,” Linqto said in a statement. “Contrary to published reports, Linqto confirms that Liquidshares’ holdings of Ripple shares remain unchanged.”

The firm also referenced a previous reveal from May 9 that reassured clients about the safety of their holdings on the platform. Linqto warned customers to rely only on official communications and to avoid being misled by rumors or false narratives spread on social media.

Ripple Confirms: No Direct Business Ties With Linqto

Ripple CEO Brad Garlinghouse weighed in on the issue, providing additional clarity. Speaking publicly, Garlinghouse emphasized that Ripple has never had a formal business partnership with Linqto and does not manage or oversee the sale of its shares on secondary markets.

“Linqto acquired Ripple shares solely through secondary market transactions from existing shareholders,” Garlinghouse stated. “Ripple does not approve or supervise Linqto’s business operations.”

He also confirmed that Ripple stopped approving secondary share transactions via Linqto at the end of 2024, distancing the blockchain firm from the unfolding drama surrounding Linqto’s financial position and legal standing.

Linqto Faces Legal Pressure and Bankruptcy Filing

This controversy comes at a time when Linqto is already facing a number of serious challenges. The company recently filed for Chapter 11 bankruptcy protection after internal investigations revealed operational shortcomings and potential violations of securities laws. Regulatory authorities in the U.S., including the Securities and Exchange Commission (SEC) and the Department of Justice (DOJ), are now reportedly investigating Linqto’s past activities.

One major concern being raised is whether customers who purchased Ripple shares via Linqto truly had legal ownership of those shares. The question stems from allegations that Linqto may have improperly represented how investor funds were being used and how ownership was recorded.

Linqto maintains that all share sales conducted through its platform were legal and properly documented. However, the investigation is ongoing, and the outcome could significantly impact not just Linqto, but the broader secondary market for pre-IPO crypto-related equities.

CEO Compensation in Ripple Shares Raises Eyebrows

Further complicating the matter is Linqto’s recent decision to pay its CEO in Ripple shares. The MOVE was intended to align management interests with those of shareholders, especially as the platform’s fortunes appear closely tied to Ripple’s market performance. Yet, critics argue that the decision adds to concerns about the company’s financial stability and long-term viability.

Ripple, meanwhile, continues to distance itself from Linqto’s internal issues, reiterating that it has no influence over how shares are traded on secondary platforms.

Conclusion: Transparency and Regulation in Spotlight

The Linqto–Ripple share controversy is a stark reminder of the growing pains in the maturing crypto and private equity sectors. As more companies seek to offer investors access to high-growth blockchain firms like Ripple, clear guidelines and legal protections will be essential.

For now, Linqto insists that its 4.7 million Ripple shares remain untouched, but the regulatory and reputational fallout from this situation could have lasting consequences. Both investors and platforms must tread carefully as the industry evolves in response to increased institutional interest and regulatory oversight.