Ripple shareholder Linqto applies for bankruptcy protection, holding 4.7 million shares of Ripple stock

ChainCatcher news, according to Cointelegraph, the private investment platform Linqto has filed for Chapter 11 bankruptcy protection in the Southern District of Texas. The company holds 4.7 million shares of Ripple purchased through the secondary market, estimated to be worth about $450 million at current market prices. Ripple CEO Brad Garlinghouse previously clarified that Linqto is merely a shareholder and there is no business relationship between the two parties.

According to court documents, Linqto has been accused of securities violations, including selling shares of private companies to unqualified investors. The U.S. Securities and Exchange Commission (SEC) has launched an investigation into potential violations. The bankruptcy protection hearing is scheduled for July 10 at 5 AM Beijing time.