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Court Battles Heat Up: Ripple Challenges Linqto's Bankruptcy Plan Over 4.7 Million Shares

Ripple has taken a firm stand against Linqto's bankruptcy strategy, filing a Reservation of Rights to contest the conversion of 4.7 million Ripple shares into a publicly traded fund.

This legal maneuver serves to block Linqto from releasing Ripple's private shares into the public market without the company's explicit consent.

Ripple's filing underscores its commitment to remaining a private entity, asserting that allowing public trading of its shares could distort its valuation and create ownership confusion.

Moreover, Ripple warns that this could endanger existing shareholders by inviting unauthorized market activity.

While Ripple expresses willingness to collaborate with Linqto under certain conditions, it emphasizes that this cannot compromise its chosen status as a private company.

The ongoing court proceedings are crucial, with a scheduled hearing set for October 3, 2025, in the Texas Southern District Court.

This hearing will address the direction of Linqto's bankruptcy restructuring, financial approvals, and management of assets linked to Ripple shares.

Additionally, it may produce clarity regarding customer claims tied to Linqto's Chapter 11 process amidst a federal investigation.

Previously, a court ruling in August blocked Linqto from utilizing customer-owned Ripple shares as collateral for a substantial loan.

These developments highlight the importance of legal clarity for both companies and investors in the private equity market.