XRP investors are at the centre of a securities-fraud class action that accuses former Linqto chief executive William Sarris of secretly imposing mark-ups of up to 60 percent on pre-IPO Ripple shares and other highly sought-after private-company equity like Uphold and Kraken sold through special-purpose vehicles on the fintech’s platform.
Because Sarris is sued in his personal capacity, Deaton argues the litigation is not stayed by Linqto’s Chapter 11 petition of 8 July 2025. The company, now led by chief executive Dan Siciliano, has secured up to $60 million in debtor-in-possession financing and says court oversight is “the only way forward” to emerge as “a profitable, law-abiding organisation” while it cooperates with SEC and FINRA investigations.
Investor outreach has proved challenging. Deaton scheduled an X Spaces session for 7:30 p.m. EST on 9 July, but abandoned the effort after repeated crashes, posting instead: “The spaces keeps crashing. We will set up a conference call early next week via phone line. I won’t do a Zoom link again because it got bombed last time.” He also reassured international users: “Anything I do includes ALL Linqto customers, regardless of where you live.”
Meanwhile, restructuring jockeying has begun. Shareholder Sapien Group says it has marshalled a majority bloc of equity and may seek to dismiss the Chapter 11 case, while Deaton has signalled plans to engage the creditors’ committee—a move endorsed by forensic accountant Rob Loh, who wrote that the panel “will have real power in the bankruptcy process.” Deaton confirmed: “Rob is correct. We will have a real say in what happens in the bankruptcy.”
At press time, XRP traded at $2.42.
