XRP Legal Battle Intensifies as John Deaton Files Class Action Against Linqto Over Alleged Fraud

Prominent XRP attorney John Deaton has taken legal action against Linqto founder William Sarris, filing a class action lawsuit alleging fraudulent sales of unlicensed shares in private crypto firms. The complaint, lodged in Massachusetts federal court on July 9, 2025, claims Sarris exploited regulatory gaps and deceptive pricing tactics to sell stakes in Ripple, Kraken, and other blockchain companies via Linqto's platform. This development underscores ongoing regulatory scrutiny in the crypto space and could have significant implications for XRP and other digital assets involved. As the case unfolds, it may set precedents for how crypto investments are marketed and sold, potentially influencing market confidence and investor protection standards in the burgeoning digital asset industry.

Pro-XRP Lawyer John Deaton Sues Linqto for Allegedly Misleading Crypto Investors

Prominent XRP attorney John Deaton has initiated a class action lawsuit against Linqto founder William Sarris, alleging fraudulent sales of unlicensed shares in private crypto firms. The complaint, filed July 9 in Massachusetts federal court, accuses Sarris of employing deceptive pricing tactics and regulatory loopholes to sell stakes in Ripple, Kraken, and other blockchain companies through Linqto's platform.

Court documents reveal investors were charged up to 60% above fair market value, with Sarris allegedly exploiting exemptions from securities registration requirements. The scheme reportedly targeted retail participants through special purpose vehicles (SPVs), circumventing standard disclosure protocols. Deaton represents thousands of claimants affected by Linqto's 2023 bankruptcy proceedings.

Legal analysts note the case could establish precedent for secondary market transactions of pre-IPO crypto shares. Regulatory filings indicate Linqto processed over $150 million in transactions before its collapse, with many investors now seeking restitution through the bankruptcy court.

XRP's Growth Stalls Despite Regulatory Wins and Past Surge

XRP's meteoric 445% rally post-2024 U.S. elections—fueled by regulatory clarity and political tailwinds—has given way to stagnation. The token remains rangebound as of July 2025, defying expectations after its landmark SEC settlement and pro-crypto policy shifts.

Between November and December 2024, XRP delivered a 281.7% monthly return as Ripple's legal victories coincided with favorable election outcomes. Yet the asset now shows muted price action despite macro improvements, with analysts pointing to Ripple's continued control over 44% of circulating supply through escrows and corporate wallets.

"Centralization persists as the invisible handcuff," notes crypto strategist Jose Luis Cava. While technically decentralized, Ripple's structural influence through escrow releases and treasury management appears to be limiting XRP's upside potential despite cleared regulatory hurdles.

XRP Hits 7-Week High Amid Whale Accumulation

XRP surged to $2.42, marking a seven-week peak as whale wallets holding at least 1 million tokens climbed to 2,742. These addresses now control 47.32 billion XRP—a clear signal of growing institutional confidence.

Trading volume spiked 74% to $4.54 billion, while derivatives activity mirrored the bullish sentiment with open interest jumping 10% to $5.62 billion. The rally comes as Santiment data confirms the highest price level since May 23.

Ripple CEO Celebrates Partial Victory in SEC Lawsuit, but Legal Battle Lingers

Ripple CEO Brad Garlinghouse hailed a pivotal court ruling that declared XRP not a security, marking a significant milestone in the company's four-year legal clash with the U.S. Securities and Exchange Commission. Speaking at a Senate Banking Committee hearing, Garlinghouse framed the decision as a watershed moment for crypto regulation—one that establishes precedent for other industry players fighting similar battles.

The victory comes with an asterisk. Former SEC attorney Marc Fagel notes the agency still must formally dismiss its appeal, a process typically requiring 1-2 months for internal voting procedures. Neither party has withdrawn pending appeals as of this reporting.

Garlinghouse used the platform to criticize America's "regulation by enforcement" approach, arguing it has driven blockchain innovation offshore while failing to protect consumers. The comments underscore growing tensions between crypto firms and regulators struggling to fit decentralized assets into traditional securities frameworks.

XRP Whales Accumulate as Price Nears $2.50, $3 Target in Sight

XRP has surged to $2.43, its highest level since May, as on-chain data reveals sustained accumulation by large holders. Santiment reports 2,742 wallets now hold at least 1 million XRP—just one address shy of the all-time record—collectively controlling 47.32 billion tokens. This whale activity typically precedes significant price movements.

Ripple's ongoing advocacy for U.S. regulatory clarity adds fundamental support to the technical bullish case. The combination of institutional buying pressure and improving regulatory prospects has traders speculating about a potential breakout above $3, which WOULD mark a 23% gain from current levels.

Ripple CEO Brad Garlinghouse Predicts $2 Trillion Stablecoin Market Boom

Ripple CEO Brad Garlinghouse forecasts explosive growth for the stablecoin sector, projecting a near-tenfold expansion from $250 billion to $2 trillion within years. Institutional demand and regulatory clarity are driving this seismic shift, with Garlinghouse calling the development "profound." The prediction aligns with U.S. Treasury Secretary Scott Bessent's recent comments on dollar-linked stablecoins reinforcing global dollar dominance.

Ripple's strategic entry into the stablecoin arena comes with RLUSD, launched after years of leveraging third-party solutions. The move signals recognition of growing enterprise demand for compliant crypto instruments. BNY Mellon's custodial endorsement of RLUSD marks a watershed moment—traditional finance is now validating stablecoins as legitimate financial tools.