A startup once hailed for democratizing access to private tech shares is now in turmoil. Linqto, the U.S.-based platform that promised everyday investors a slice of companies like Ripple and SpaceX, is collapsing under legal pressure, financial mismanagement, and allegations of fraud.
The company is reportedly preparing to file for bankruptcy while facing federal scrutiny over deceptive sales tactics. Internal probes have revealed that users never actually owned shares of the companies they thought they were investing in. Instead, Linqto issued representative units — complex instruments that offered exposure, but not legal ownership.
The situation escalated after a 2023 sales push dubbed “Spike Day,” led by former CEO William Sarris. According to documents obtained by The Wall Street Journal, Sarris encouraged staff to sell Ripple equity at inflated prices — up to 60% above Linqto’s cost — without disclosing the markup. The SEC typically allows no more than a 10% resale premium. A legal review warned these trades could amount to securities fraud, and Linqto reportedly profited $2 million from them.
More alarmingly, the company allegedly marketed these investments to people who may not have met accredited investor requirements, raising further regulatory concerns.
The fallout has drawn the attention of Ripple itself. CEO Brad Garlinghouse publicly distanced the blockchain firm from Linqto, confirming that Ripple had no formal partnership and that its involvement was limited to a secondary market sale of 4.7 million shares.
Linqto had built its brand around making exclusive deals accessible to retail investors, often relying on aggressive social media marketing campaigns. The platform managed as much as $500 million in client assets — but its model now appears deeply compromised.
Though Ripple shares have appreciated in value, meaning some Linqto customers may still see financial gains, legal questions over the nature of ownership and investor rights leave the future murky.
