The post XRP News: Linqto Stands Firm on Ripple Holdings, Threatens Legal Action Against False Reports appeared first on Coinpedia Fintech News
On Monday, Linqto, a San Francisco-based investment platform, released an official statement denying the misinformation shared by Matt Rosedin, Founder and CEO of CapSign. A post shared by Mr. Rhodesian on X falsely indicated that a private equity fund being established by CapSign holds 4.7 million Ripple shares held by Liquidishares.
Statement Clarity: Ripple And Linqto
In June, it was reported that the investment company, Linqto, was heading toward bankruptcy. The reports gained more credibility after Mr. Rosendin encouraged false information that his company, CapSign, holds $4.7 million of Ripple, further boosting the false idea of Linqto’s bankruptcy.
Linqto denied the false statement shared by Mr. Rosendin by saying, “Contrary to published reports on X, Linqto confirms that Liquidshares’ holdings of Ripple shares remain unchanged.”
Ripple Stepped in to Confirm Linqto Shares
Due to the growing speculations of Linqto’s bankruptcy reports, users feared their Ripple shares, bought through Linqto, might be at risk. To clear the rising doubts, Ripple CEO Brad Garlinghouse clarified the confusion of Ripple’s connection to the Linqto. He stated–
“What we know from our records is Linqto owns 4.7M shares of Ripple, solely purchased on the secondary market from other Ripple shareholders (never directly from Ripple).”
Garlinghouse also said that, besides being a shareholder, Ripple has no connection with Linqto, and the trading between them was stopped in 2024 amid growing concerns.
Linqto Confirms the Security of Shares
Linqto explained that the firm has incorporated a new management team to ensure the investments in the private held companies are secured. It also disclosed that Linqto retained an independent third-party analyst firm to review the internal analysis and check for any risks.
Linqto has prioritized cooperating with regulators for the ongoing investigations regarding compliance violations. The company’s transactions will remain suspended until further notice from the officials is issued.
Final Thought
Currently, Linqto is under investigation by both the Securities and Exchange Commission (SEC) and and US Department of Justice (DOJ) for its misleading sales practices. Until the legal clarity is confirmed with Linqto, Ripple is keeping its distance from the troubled firm.