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Ripple Clarifies Linqto Relationship Amid Regulatory Investigation
In a recent statement, Ripple CEO Brad Garlinghouse has clarified the company’s relationship with private investment platform Linqto amidst ongoing scrutiny from the Securities and Exchange Commission (SEC) and the US Department of Justice (DOJ).
According to Garlinghouse, Ripple has never had any formal ties or equity sales with Linqto. Instead, the company stopped approving Linqto-related secondary transactions in late 2024 due to growing concerns about the platform’s practices.
This statement comes as part of a broader investigation into potential securities law violations by Linqto and its former CEO, William Sarris. As reported earlier, Sarris is under scrutiny for allegedly inflating Ripple share prices by over 60% before selling them without proper authorization.
Moreover, this investigation also highlights concerns about the sale of shares to non-accredited investors, with pro-crypto attorney John Deaton warning that these sales may pose a significant regulatory challenge for Linqto.
In his statement, Garlinghouse emphasized the company’s commitment to transparency and compliance. The Ripple CEO stated that any allegations of Ripple being involved in Linqto’s activities are unfounded.
As part of the ongoing scrutiny, Ripple is working closely with regulators to address these concerns and ensure the integrity of the crypto market.
It remains to be seen how this situation will unfold and whether it has a significant impact on Linqto or Ripple.
Source: cryptoslate.com
