The bankruptcy of Linqto has caused panic among thousands of retail investors who used the platform to buy shares in private companies like Ripple, Circle, SpaceX, and Kraken. But attorney John Deaton says investors shouldn’t lose hope just yet.
Deaton explained that customers are first in line when it comes to recovering assets. Linqto doesn’t have large creditors ahead of its 11,500 investors, giving them a better chance of getting their money back.
Importantly, the shares are still there. Linqto holds 4.7 million Ripple shares, and their value has gone up. Ripple even repurchased shares in June 2025 at $175 each. If valued at that price, investors’ Ripple shares could now be worth over $800 million. Circle shares, according to Deaton, have increased more than six times since they were bought.
Ripple CEO Brad Garlinghouse confirmed Linqto’s Ripple holdings and made it clear that Ripple has no ties to Linqto’s business model. He also said XRP has nothing to do with the private shares.
While some reports blame Linqto’s founder for mismanagement or even fraud, others suggest the bankruptcy may be a power move by its current CEO. Deaton said it’s best to stop guessing, everything will be made public in court.
He is now working to represent investors and help them recover their money. If everyone cooperates, a resolution could come within a year.
Also Read: Ripple Locks 400M XRP in Escrow, Will XRP Turn Positive?
