A U.S. Bankruptcy Court has approved the sale of nearly $130 million worth of private Ripple shares as part of Linqto's Chapter 11 restructuring. The move is designed to help recover funds for thousands of investors who bought stakes in private companies through the platform.
🏦 Institutional Demand Remains Strong
Several major investment firms are participating in the deal:
- Galaxy Digital – $60M
- Arrington Capital – $50M
- The Private Shares Fund – $16M
- GAM Alternatives Lux – $4M
Ripple has waived its right of first refusal, allowing the transfers to move forward. While this highlights continued institutional interest in Ripple's private valuation, it does not indicate an IPO is coming and has no direct impact on XRP holders.
📋 Linqto's Recovery Plan
Linqto entered Chapter 11 bankruptcy in July 2025 after new management discovered potential securities-law violations dating back to 2020. The company had already ceased operations in March 2025 and held investments in around 111 private companies valued at more than $500 million.
In February 2026, about 95% of voting customers approved Linqto's restructuring plan. The plan offers investors multiple recovery options, including a liquidating fund containing indirect private-company interests, a publicly listed closed-end fund holding private shares, or a combination of both.
⚖️ New Legal Battle Could Slow Recoveries
The recovery process now faces another hurdle. Linqto and its creditors have sued Forge Global after the company allegedly attempted to step down as trustee just days before the customer recovery trust was scheduled to launch.
According to the lawsuit, Forge cited demands from its new parent company, Charles Schwab, as the reason for withdrawing. Linqto is asking the bankruptcy court to require Forge to fulfill its original responsibilities.
If the dispute continues, customer recoveries could be delayed, legal costs may rise, and asset transfers could take longer. Importantly, this case concerns the administration of customer assets—not the validity of Ripple shares or the value of XRP.
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