TechFlow news, July 8 — According to Cointelegraph, private investment platform Linqto filed for Chapter 11 bankruptcy protection on Monday in the U.S. District Court for the Southern District of Texas. The company holds approximately 4.7 million shares of Ripple acquired on the secondary market, estimated at current market value to be worth around $450–500 million.
Ripple CEO Brad Garlinghouse has clarified that, aside from Linqto being a shareholder, the two companies have never had any business relationship. Court documents indicate that Linqto ran into trouble due to violations of securities regulations, including improperly structuring its limited liability companies and failing to obtain transfer approvals from issuers such as Ripple.
Previous reports indicated that former Linqto CEO William Sarris attempted to sell Ripple shares to users at 60% above the purchase price, violating SEC rules that cap markups at 10%. The company shut down its platform on March 13 this year and remains under ongoing investigation by the SEC.
