Linqto, a private investment platform enabling investors to acquire shares in pre-IPO companies, has filed for Chapter 11 bankruptcy while holding 4.7 million shares of Ripple. The filing was submitted to the US District Court for the Southern District of Texas. Following Ripple CEO Brad Garlinghouse's clarification that Linqto has no business relationship with Ripple, the troubles for Linqto escalated. Reports emerged of federal investigations suggesting Linqto misled customers regarding their ownership of securities and marketed to ineligible buyers. With its revenue operations halted since March 13, Linqto faces scrutiny for not complying with securities laws. A recent court filing revealed that its securities offering vehicle holds assets valued over $500 million. Linqto's bankruptcy hearing is scheduled shortly, amid ongoing investigations into its compliance failures and allegations from its former chief revenue officer regarding serious mismanagement. Additionally, Ripple ceased approval for Linqto's share purchases in late 2024, which followed an investigation by the Financial Industry Regulatory Authority.

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