Ripple CEO Brad Garlinghouse has clarified the company’s position regarding Linqto, a private investment platform currently under investigation by U.S. regulators. Garlinghouse confirmed Ripple has no formal business relationship with Linqto and never directly sold shares to the platform .
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:
— Brad Garlinghouse (@bgarlinghouse) July 2, 2025
What we know from our records is Linqto owns 4.7M shares of Ripple, solely purchased on the secondary market… https://t.co/XHstpwwmIL
Key Developments
• Linqto acquired 4.7 million Ripple shares exclusively through secondary markets, not directly from Ripple .
• Ripple halted approval of Linqto-related transactions in late 2024 due to operational concerns .
• The SEC and DOJ are investigating Linqto for alleged securities violations, including share price inflation and sales to non-accredited investors .
Regulatory Focus
Investigators are examining former Linqto CEO William Sarris for reportedly inflating Ripple share prices by over 60% during a high-pressure sales campaign dubbed “Spike Day” . Approximately 11,500 investors purchased shares through special-purpose vehicles (SPVs), with 5,000 being non-accredited—creating significant compliance risks.
Investor Implications
Linqto’s new management has frozen client accounts and warned that a potential Chapter 11 bankruptcy could leave investors as unsecured creditors . Ripple CTO David Schwartz clarified that Linqto customers owned fractions of legal entities holding Ripple shares, not direct equity.