Linqto’s Bankruptcy Under Fire as Shareholder Alleges Fraud and “Improper Forum Shopping”
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- The Linqto Inc. bankruptcy is being challenged as “fraudulent” in a new court filing by a major shareholde
- They allege management engaged in “improper forum shopping” by filing in Texas to avoid Delaware’s laws
- A key court hearing on Aug. 5 will decide if customer assets belong to the company’s estate
Chapter 11 bankruptcy filing of the private investment platform Linqto Inc. is now being challenged in court as “potentially fraudulent and strategically manipulative.”
Their major shareholder, Sapien Group, filed a motion to transfer the bankruptcy proceedings from Texas to Delaware. The Group asserts that the current venue is legally improper and was strategically manufactured by Linqto’s management to shield themselves from accountability.
The filing came just days after Ripple CEO Brad Garlinghouse publicly distanced his firm from Linqto, despite holding 4.7 million of pre-IPO Ripple shares.
Linqto Inc., a private investment platform known for offering pre-IPO shares, has landed in the middle of a high-stakes legal battle following its Chapter 11 bankruptcy filing in the Southern District of Texas earlier this month.
Related: Deaton Joins Linqto C…
The post Linqto’s Bankruptcy Under Fire as Shareholder Alleges Fraud and “Improper Forum Shopping” appeared first on Coin Edition.
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