SEC seeks to recover $430 million from retail investors
The SEC sued Linqto’s Sarris and Endoso, alleging that from 2021 to 2024 they sold more than $430 million worth of SPVs through subsidiaries, backed by pre-IPO unicorn equity. The pricing was allegedly above fair value, claims that offerings were selling out and that prices were adjusted algorithmically were false, and in-house legal counsel had warned that the business was unlawful.
The pre-IPO tokenization business has an on-chain mirror, and the valuations retail investors receive are often simply prices chosen by insiders. With a $430 million shortfall now in the spotlight, funds are likely to scrutinize compliance credentials more closely in the near term for RWA and pre-IPO concepts, and valuation discounts may widen.
If you’re holding pre-IPO positions, what’s your cost basis? Would you dare to add at these levels?
$ONDO $ETH $BTC
#RWA #SEC regulation
The SEC sued Linqto’s Sarris and Endoso, alleging that from 2021 to 2024 they sold more than $430 million worth of SPVs through subsidiaries, backed by pre-IPO unicorn equity. The pricing was allegedly above fair value, claims that offerings were selling out and that prices were adjusted algorithmically were false, and in-house legal counsel had warned that the business was unlawful.
The pre-IPO tokenization business has an on-chain mirror, and the valuations retail investors receive are often simply prices chosen by insiders. With a $430 million shortfall now in the spotlight, funds are likely to scrutinize compliance credentials more closely in the near term for RWA and pre-IPO concepts, and valuation discounts may widen.
If you’re holding pre-IPO positions, what’s your cost basis? Would you dare to add at these levels?
$ONDO $ETH $BTC
#RWA #SEC regulation