Linqto, a major shareholder of Ripple with 4.7 million shares, filed for Chapter 11 bankruptcy amid allegations of regulatory violations, distancing Ripple from involvement.
Ripple's reputation may face scrutiny, while XRP's market remains unaffected. The situation echoes prior failures of crypto-linked platforms, placing Linqto investors at financial risk.
Ripple's lawyer is challenging the Chapter 11 bankruptcy plan of Linqto, a key Ripple shareholder, as regulatory investigations unfold.
This situation underscores potential reputational risks for Ripple and reflects ongoing scrutiny in the crypto investment landscape.
Ripple, a prominent name in cryptocurrency, is distancing itself as Linqto, a shareholder, files for Chapter 11 bankruptcy. Linqto’s financial struggles emerge amid SEC investigations.
Ripple CEO Brad Garlinghouse emphasizes no business ties with Linqto, whose investment vehicles held substantial Ripple shares. The bankruptcy follows scrutiny of Linqto’s business practices.
Linqto's bankruptcy holds significant financial stakes, with potential losses for unsecured creditors. Ripple’s operations remain unaffected, but investor concerns persist.
The legal proceedings have triggered a reevaluation of crypto-linked investment platforms. Investor sentiment leans negative, reflecting concerns over asset security in non-traditional finance.
This case draws parallels with past crypto investment failures like BlockFi. Similarities include unsecured credit risks and compliance failures.
Future outcomes may reflect on market trust in crypto investments. Historical patterns suggest stringent regulatory crackdowns and potential recovery challenges for investors.
Brad Garlinghouse, CEO, Ripple, "Apart from Linqto being a shareholder, Ripple has never had a business relationship with Linqto, nor have they participated in our financing rounds."
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By Bitcoin Info News
about 7 hours ago
