Ripple’s CEO, Brad Garlinghouse, has clarified the confusion surrounding the company’s relationship with investment platform Linqto.
Garlinghouse issued the clarification while responding to reports of the U.S. Department of Justice (DOJ) probe into Linqto and the company’s potential bankruptcy filing.
No Business Relationship with Linqto
Following the reports, Garlinghouse addressed Linqto investors, particularly those who had purchased pre-IPO shares of Ripple. According to Garlinghouse, Linqto owns a total of 4.7 million Ripple shares, which were acquired directly from existing shareholders on the secondary market.
This indicates that Ripple did not issue its pre-IPO shares directly to Linqto. Moreover, Garlinghouse asserted that Ripple does not have any business relationship with Linqto other than the company being a pre-IPO shareholder.
He also confirmed that Linqto has never participated in any of Ripple’s fundraising campaigns.
Linqto’s Offering of Ripple Pre-IPO Shares
Notably, Linqto has been offering non-accredited investors an opportunity to invest in pre-IPO shares of top companies, including Ripple, in anticipation of a potential IPO.
On several occasions, Linqto’s pre-IPO Ripple shares have sold out within hours, due to the surge in interest in Ripple. A case in point was in October 2023, when Linqto reopened another pre-IPO stock buying opportunity for Ripple shares after previously selling out.
However, investors have been skeptical about Linqto’s business model, with some users expressing concerns on X. As a result, Ripple halted the approval of Linqto’s additional purchase of its shares via the secondary market in late 2024.
Notably, Garlinghouse’s comments are part of an effort to distance Ripple from the regulatory and legal concerns tied to Linqto’s business model.
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
Linqto Faces Regulatory Scrutiny
For context, concerns about Linqto’s business model began in November 2024. At the time, The Crypto Basic reported that Gene Zawroty, Linqto’s former Chief Revenue Officer (CRO), sued the company and two other executives for fraud, market manipulation, and insider trading.
Currently, federal investigators are also examining the company’s operations, with reports suggesting that Linqto may face potential bankruptcy. In a previous statement, former U.S. Senate Candidate John Deaton confirmed that the SEC and another three-letter federal agency are also probing Linqto’s business model.
According to him, the pre-IPO shares that Linqto offers do not belong to Ripple. He suggested that they are owned by a Special Purpose Vehicle (SPV), which holds pre-IPO shares in Ripple.
Tomorrow, I’ll explain why I called the @linqtoinc situation (i.e. imminent Bankruptcy) a total clusterfuck. For one, there are approximately 13-14,000 Linqto customers.
About 11,500 of those 13-14K customers, purchased shares/units of a Special Purpose Vehicle (SPV) in… https://t.co/L8qQtynIte
— John E Deaton (@JohnEDeaton1) June 30, 2025
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Source: https://thecryptobasic.com/2025/07/02/brad-garlinghouse-confirms-ripple-has-no-business-relationship-with-linqto-amid-federal-investigation/?utm_source=rss&utm_medium=rss&utm_campaign=brad-garlinghouse-confirms-ripple-has-no-business-relationship-with-linqto-amid-federal-investigation