Brad Garlinghouse Sets Record Straight: Ripple’s Linqto Ties Under DoJ Microscope

Ripple CEO Brad Garlinghouse fires back as scrutiny intensifies—just another day in crypto's regulatory circus.

The Linqto Link: More Than Meets the Eye?

Garlinghouse clarifies Ripple’s relationship with private investment platform Linqto amid a Department of Justice probe. Because nothing says 'healthy ecosystem' like federal investigators knocking.

Why This Matters Now

With XRP's legal saga still fresh, Ripple can't afford another regulatory headache. Yet here we are—watching the DoJ peel back another layer of crypto’s onion.

The Punchline

Another week, another crypto giant explaining itself to authorities. At least the lawyers are getting rich.

TLDR

• Brad Garlinghouse confirmed that Linqto holds 4.7 million Ripple shares through secondary market purchases.
• Ripple has never sold shares directly to Linqto and has no formal business relationship with the platform.
• Ripple stopped approving Linqto’s secondary market transactions in late 2024 due to increasing concerns.
• Brad Garlinghouse addressed confusion among retail investors who believed they were buying Ripple shares directly.
• Ripple’s Chief Technology Officer stated that investors only own shares in entities that hold Ripple stock.

Ripple CEO Brad Garlinghouse addressed confusion around Linqto’s holding of Ripple shares as federal scrutiny intensifies. He confirmed Linqto acquired 4.7 million Ripple shares solely through secondary markets. The blockchain firm stressed it had no direct involvement in any sales to Linqto.

Ripple Distances Itself From Linqto Amid DoJ Investigation

Brad Garlinghouse stated Ripple never sold shares to Linqto or partnered with the investment platform in any capacity. While Linqto faces a probe by the U.S. Department of Justice, Ripple emphasized its independence from the firm’s activities. Garlinghouse underlined that Ripple took action to limit Linqto’s access to its equity in late 2024.

Understandably, there have been many questions from those who believed they were buying Ripple shares from Linqto, and what happens next. To be clear, on Ripple’s end:

What we know from our records is Linqto owns 4.7M shares of Ripple, solely purchased on the secondary market… https://t.co/XHstpwwmIL

— Brad Garlinghouse (@bgarlinghouse) July 2, 2025

Ripple’s leadership responded following confusion among retail investors who believed they were acquiring equity directly from Ripple. Brad Garlinghouse clarified that Ripple has never had a formal business agreement with Linqto. Moreover, Ripple halted approval of further Linqto transactions to avoid potential regulatory concerns.

The announcement comes as Linqto reportedly approaches financial distress while holding shares through special purpose vehicles (SPVs). Brad Garlinghouse highlighted Ripple’s transparency and distanced the company from Linqto’s offerings. Ripple continues to build operations despite external legal uncertainties involving other parties.

Concerns Rise Over SPVs and Shareholder Rights

Brad Garlinghouse’s comments followed widespread frustration among Linqto investors regarding ownership rights in Ripple equity. Many retail investors used SPVs, expecting direct access to Ripple shares before its public listing. However, legal experts explained that investors only own shares in entities that hold Ripple stock.

Ripple CTO David Schwartz reinforced that the SPVs do not grant direct ownership of Ripple shares to individual investors. Brad Garlinghouse confirmed that all Ripple equity held by Linqto was acquired from other shareholders. The company had no control over those secondary transactions.

Attorney John E. Deaton described the situation as highly problematic, noting that up to 5,000 investors may be non-accredited. These revelations have prompted further questions about Linqto’s due diligence processes. Brad Garlinghouse reiterated that Ripple aims to remain fully compliant with regulatory expectations.

Ripple continues its strategic focus while distancing itself from any fallout related to Linqto’s current legal challenges. Brad Garlinghouse’s position reflects a broader effort to maintain regulatory clarity.