Ripple Shares Are Safe Despite Linqto Bankruptcy, Says John Deaton

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The Linqto collapse has sent shockwaves through crypto’s private equity investment world, especially among retail investors with holdings in Ripple, Circle, and SpaceX via SPVs on the platform. Amid finger-pointing and fear, attorney John Deaton is now stepping into the chaos, not just with commentary, but a promise to fight for those affected.

With many holding their life savings in private equity deals through the platform, confusion and fear are running high. But Deaton says there’s more hope here than people realize.

Investors Still Come First in Court

Deaton pointed out something important that needs attention. He explained that in this bankruptcy, Linqto has no major creditors standing in front of its customers. That means the 11,500 people who bought into Ripple and other private companies through Linqto’s SPV units are first in line. Regular shareholders of Linqto, on the other hand, are last in the queue. This legal structure gives investors a real shot at getting their money back, and maybe even more.

All the Big Shares Are Still There

Despite all the chaos, Deaton confirmed that the investments are still accounted for. Ripple, Circle, Kraken, SpaceX, and other holdings are still on the books. Ripple alone makes up 4.7 million shares, and the value of those has increased since Linqto made the purchases. Circle shares have gone up even more. According to Deaton, Circle holdings have grown by more than six times the original purchase value.

Ripple also bought back shares in June 2025 at 175 each. If that price is used to value what investors hold, their portion of Ripple could be worth over 800 million dollars.

Ripple Confirms the Shares Are Real

In response to the controversy, Ripple CEO Brad Garlinghouse confirmed that Linqto owns 4.7 million shares of Ripple. These were bought from secondary market sellers, not from Ripple itself. He made it clear that Ripple has no business ties with Linqto and didn’t participate in their resale schemes. He also stressed that XRP, the cryptocurrency, has nothing to do with these shares. This matters because many investors were confused or misled into thinking they were dealing directly with Ripple.

No More Guessing Games

Some former employees and the Wall Street Journal claimed that Linqto’s founder is the real culprit, potentially implicated in fraudulent practices and severe securities violations. Meanwhile, others allege that the current CEO is leveraging the bankruptcy as a strategic power tool by turning a small issue into a big power play. Deaton said people should stop guessing because the truth will come out. Internal emails and financial records will all be revealed in court.

If all sides work together, a plan could be approved in under a year. But if it turns into a long legal fight, it could drag on for years and eat away at the value. For now, Deaton is focused on protecting the investors and helping them recover.