XRP Lawyer John Deaton Sues Linqto Founder Over Alleged Securities Fraud
The post XRP Lawyer John Deaton Sues Linqto Founder Over Alleged Securities Fraud appeared on BitcoinEthereumNews.com. Crime Prominent crypto attorney John Deaton has launched a class action lawsuit against William Sarris, the former CEO of Linqto, alleging widespread investor deception tied to the unlicensed sale of securities via the platform. Representing thousands of retail investors, the case accuses Sarris of selling shares in private firms such as Ripple, Uphold, and Kraken through unregistered special purpose vehicles (SPVs), while concealing hefty markups and sidestepping key financial regulations. According to the lawsuit, Sarris ignored internal legal warnings throughout 2023 and 2024 and continued to promote investment structures that allegedly violated SEC and FINRA rules. The legal complaint also claims Linqto charged up to 60% in hidden fees and used deceptive language to exploit regulatory exemptions. Ripple CEO Brad Garlinghouse has publicly distanced Ripple from Linqto, especially amid growing scrutiny from federal regulators. Meanwhile, Linqto is now under bankruptcy protection in Houston. The new management accuses former executives of misleading customers about their actual ownership in over 100 private firms, allegedly inflating the value of customer holdings beyond $500 million. John Deaton, who is also pushing for investor prioritization in the bankruptcy process, insists that any financial recovery—whether through insurance or legal settlement—should go first to the customers who lost savings on the platform. Regulators are now circling, with both the SEC and FINRA probing Linqto’s business model. Fresh revelations from the company’s current leadership suggest serious discrepancies around customer asset ownership. Adding to the complexity, a group of shareholders led by Australia’s Sapien Group has challenged the proposed bankruptcy reorganization, claiming the current plan fails to serve investor interests. With over half of Linqto shareholders supporting the objection, a legal fight over the future of the company appears imminent. Author Alexander Stefanov Reporter at Coindoo Алекс е опитен финансов журналист и крипто ентусиаст. С повече от 8 години…
The post XRP Lawyer John Deaton Sues Linqto Founder Over Alleged Securities Fraud appeared on BitcoinEthereumNews.com.
Crime Prominent crypto attorney John Deaton has launched a class action lawsuit against William Sarris, the former CEO of Linqto, alleging widespread investor deception tied to the unlicensed sale of securities via the platform. Representing thousands of retail investors, the case accuses Sarris of selling shares in private firms such as Ripple, Uphold, and Kraken through unregistered special purpose vehicles (SPVs), while concealing hefty markups and sidestepping key financial regulations. According to the lawsuit, Sarris ignored internal legal warnings throughout 2023 and 2024 and continued to promote investment structures that allegedly violated SEC and FINRA rules. The legal complaint also claims Linqto charged up to 60% in hidden fees and used deceptive language to exploit regulatory exemptions. Ripple CEO Brad Garlinghouse has publicly distanced Ripple from Linqto, especially amid growing scrutiny from federal regulators. Meanwhile, Linqto is now under bankruptcy protection in Houston. The new management accuses former executives of misleading customers about their actual ownership in over 100 private firms, allegedly inflating the value of customer holdings beyond $500 million. John Deaton, who is also pushing for investor prioritization in the bankruptcy process, insists that any financial recovery—whether through insurance or legal settlement—should go first to the customers who lost savings on the platform. Regulators are now circling, with both the SEC and FINRA probing Linqto’s business model. Fresh revelations from the company’s current leadership suggest serious discrepancies around customer asset ownership. Adding to the complexity, a group of shareholders led by Australia’s Sapien Group has challenged the proposed bankruptcy reorganization, claiming the current plan fails to serve investor interests. With over half of Linqto shareholders supporting the objection, a legal fight over the future of the company appears imminent. Author Alexander Stefanov Reporter at Coindoo Алекс е опитен финансов журналист и крипто ентусиаст. С повече от 8 години…
What's Your Reaction?
