Ripple CEO Denies Direct Share Issuance to Linqto as Scrutiny Grows

Ripple CEO Brad Garlinghouse has confirmed that Ripple maintains no business relationship with Linqto, the private investing platform currently under federal investigation. His statement comes in response to recent reports suggesting Linqto may face bankruptcy and is being probed by the U.S. Department of Justice (DOJ).

Garlinghouse clarified that Linqto owns 4.7 million Ripple shares. However, Ripple did not issue these shares directly. Instead, Linqto acquired them from existing shareholders on the secondary market. Therefore, Garlinghouse stressed that Linqto acts merely as a pre-IPO shareholder not a business partner.

No Fundraising Involvement from Linqto

The Ripple CEO further stated that Linqto has never taken part in any of Ripple’s fundraising activities. This distinction aims to draw a clear line between Ripple and the legal concerns surrounding Linqto’s operations.

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

Despite lacking a direct link with Ripple, Linqto has actively offered pre-IPO shares of Ripple to retail investors. These shares often sold out within hours due to rising interest. Notably, in October 2023, Linqto reopened a round of Ripple pre-IPO sales after previously selling out.

As concerns about Linqto’s business model increased, especially on the social media platform X, Ripple responded. By late 2024, Ripple stopped approving any additional purchases of its shares by Linqto through secondary market channels.

Legal Issues Mount Against Linqto

Federal scrutiny of Linqto began in November 2024. At that time, Gene Zawroty, Linqto’s former Chief Revenue Officer, sued the company for fraud, insider trading, and market manipulation. The Crypto Basic highlighted these claims, and more recently, federal agencies including the SEC began investigating Linqto’s operations.

Former U.S. Senate candidate John Deaton also commented on the case. He stated that the Ripple shares Linqto sells do not belong to Ripple itself. Instead, they are held by a Special Purpose Vehicle (SPV) that Linqto manages.

Garlinghouse’s remarks make Ripple’s position clear: the company seeks to distance itself from any legal or financial trouble facing Linqto. Ripple aims to reassure its community and stakeholders that it holds no responsibility for Linqto’s actions or its legal standing.

Disclaimer: The information in this article should not be considered financial advice, and FXCryptoNews articles are intended only to provide educational and general information. Please consult with a financial advisor before making any investment decisions.