Ripple shareholder Linqto has filed for bankruptcy following months of controversy around securities laws violations, with the first hearing expected on Tuesday.
Linqto, a private investment platform that allows investors to buy shares in pre-initial public offering companies, has filed for Chapter 11 bankruptcy in the United States. The company holds 4.7 million Ripple shares bought on the private market.
Linqto filed for bankruptcy with the US District Court for the Southern District of Texas on Monday.
The filing came soon after Ripple CEO Brad Garlinghouse clarified last week that Linqto owns 4.7 million secondary Ripple shares but has no business relationship with the company.
