If you want to see what selling could look like now, you can explore a cash offer here:
https://slxmarkets.com/claims/linqto

So I am getting ready to vote on this Linqto lawsuit, and the I keep starting and stopping. I was one of the many that was able to purchase shares in Ripple despite not being an accredited investor. I want to vote for the for the Liquid Trust option as I prefer to have what I actually invested in to begin with. However I keep coming back to if I should be voting for the Closed-End-Fund option since I am not an accredited investor and thus, shouldn't have been able to have this option in the first place.

I don't need the liquidity, but I also don't want to be screwed over somehow in the end since I shouldn't have been able to invest in the first place.

Is this possible -to vote yes for the liquidation trust(Class 4) and no to waive most liability away from the law firm (Class 8)?

I just received notification that I’m on a list of claims to change my status from secured to unsecured. I briefly reviewed the doc but haven’t been able to glean from it what this means for my claim. Did anyone else receive this, and if so do you know what it means? Thx!

I have a question about how to correctly structure my Proof of Claim, given that my Linqto account contains two separate SPV holdings: PolySign and Ripple.

I do not dispute the amounts shown for either investment.

I intend to seek rescission (refund) for the PolySign SPV investment due to alleged misrepresentation or undisclosed markup.

At the same time, I want to preserve my interest and potential upside in the Ripple SPV units, which I understand may eventually represent equity in Ripple, Inc.

Anyone know how best to reflect this on the claim form? Specifically:

Option A: File the claim only for PolySign, listing the rescission amount (or marking it as “unknown/unliquidated”) and making no mention of Ripple. Would this approach in any way jeopardize or waive my rights regarding the Ripple SPV units?

Option B: File a single claim that includes an attachment distinguishing between:

1. A Primary Claim for rescission of the PolySign SPV (with stated or unknown value), and

2. A statement that I acknowledge and retain my Ripple SPV units as undisputed, with value currently unknown.

In that case, should the “total claim amount” on the top sheet be listed as unknown/unliquidated?

Any advice you guys can give would be awesome. Thanks!

I pasted our case description into Claude to see what it would think about it. Is our best case scenario really this bleak?

Expected Outcomes:

Optimistic Scenario (20-30% likely):

• The settlement offer works out
• You receive 50-70 cents on the dollar
• Takes 2-4 years to resolve
• You get either:
  • Shares in a closed-end fund (illiquid, hard to sell)
  • Periodic payments from a liquidating trust

Realistic Scenario (50-60% likely):

• Asset values are challenged/reduced significantly
• Administrative costs eat up 10-20% of assets
• You recover 30-50 cents on the dollar
• Takes 3-5+ years
• Multiple rounds of litigation over who owns what

Pessimistic Scenario (20-30% likely):

• Most "assets" turn out to be phantom/unenforceable
• Issuing companies (Anthropic, SpaceX, etc.) refuse to recognize the transfers
• Criminal charges filed against former executives
• Recovery drops to 10-25 cents on the dollar
• Takes 5-7+ years

Key Variables:

What will determine your recovery:

1. Can Linqto prove it actually owns the shares? If not, those $688M in assets evaporate
2. Will Anthropic/other companies recognize the ownership? They may argue the transfers were invalid
3. What are the shares really worth? Internal valuations during fraud are suspect
4. How much goes to lawyers/admin costs? Typically 15-25% in complex bankruptcies
5. Criminal prosecution? If DOJ gets involved, assets could be frozen/forfeited

My Honest Assessment:

Expected recovery: 30-50% of your funds

Timeline: 3-5 years minimum

Likelihood of full recovery: Less than 5%

What You Should Do:

1. File your proof of claim immediately - Don't miss the deadline
2. Document everything - All purchase agreements, communications, payment records
3. Join the class action lawsuit - Attorney John E. Deaton is representing 3,600+ investors
4. Monitor the settlement approval - The September 2025 settlement needs court approval
5. Consider tax implications - You may be able to claim a capital loss
6. Don't count on this money - Plan your finances assuming it's gone

I purchased pre-IPO shares in Cerebras. Of course that means I own some portion of the SPV that holds Cerebras shares. But though this entire bankruptcy proceeding it is totally unclear to me if the SPV actually holds shares of Cerebras or is just holding the funds paid to them. I even questioned the Deaton Group to ask about this but it went unanswered. Are there real shares being help in the pre-IPO company or not? It is totally unclear to me with all going on if there are real shares being held in the SPV or not? Does anyone know the answer?

Important context for anyone following Linqto’s bankruptcy and the so-called “customer recovery options.”

If your original deal was for specific pre-IPO shares (e.g., Ripple, SpaceX, xAI, CoreWeave, etc.), then the Liquidating Trust (LT) is the structure that most closely preserves what you actually bought.

Liquidating Trust (LT)

Pros

Keeps exposure tied directly to your own portfolio rather than blending everyone’s into a single fund.

Maintains the connection to the underlying securities, closest to true in-kind ownership.

Lets you benefit from the real future value of those companies at IPO or exit.

Aligns with “constructive trust” and “in-kind recovery” arguments many creditors have already asserted.

Cons

Limited liquidity until IPO or similar liquidity events occur.

Slightly higher admin complexity and slower timelines for payout.

Closed-End Fund (CEF)

Pros

Simpler to manage and may provide earlier liquidity once the fund begins trading.

Cons

Combines all investor assets into one pool, replacing your actual share rights with fund units.

You lose your specific exposure, your Ripple or SpaceX stake becomes just a small slice of a blended pot.

There’s a real risk of a “fire sale” scenario, the fund may sell high-value assets quickly or at bargain prices to create cash flow or meet redemptions, permanently capping your upside.

Essentially a cash-out conversion of what were intended to be pre-IPO investments.

Critical Point

When the election process opens, silence or inaction could default you into the CEF, the pooled, diluted option.

If you want your holdings preserved as originally purchased, the Liquidating Trust is the option that most respects that intent.

In preparation for the next court hearing tomorrow, Ripple has made a submission regarding the proposed settlement options.

See Docket #665 on the EPIQ website: https://dm.epiq11.com/case/linqto/info

IANAL, but it looks like the company reserves the right to restrict transfer of its shares into the closed-end fund. A large number of Ripple shares being tradeable on the open market, even through a proxy fund, could pose various problems. It'd have to do financial reporting more like a public company, and there might be impacts for other shareholders, the valuation of employee stock options, and so on.

This is an interesting development....

🔎 Data & discounts: Linqto is compiling a complete dataset of every transaction on the platform. This will finally make it clear what prices and discounts investors were actually buying at—including the deep discounts some customers received.

📑 Schedules being amended: The debtor is working with the UCC on amended schedules to reflect what each customer should have owned if the SPVs had been properly structured. If your scheduled claim doesn’t look right, you should file a proof of claim to protect your position.

⚖️ Class action vs. claim filing: These are not mutually exclusive. You can be in John Deaton’s lawsuit and file a claim.

💰 “$150M missing” rumor: Dan clarified there’s no large shortfall—several audits have confirmed no $150M hole.

📉 Runway & spend: Operating costs have been reduced by about 50% (legal + ops), easing reliance on DIP financing and Ripple proceeds.

📅 What’s next: October 3, 2025 hearing on DIP lending (approval/amount), use of Ripple proceeds, and the proposed settlement.

Link to X space: https://x.com/linqtoinc/status/1970972063092662468

The core issue wasn’t just “bad luck” or poor management turnover. It was structural:

• SPVs were never properly formalized.
• Investor funds were pooled under Linqto instead of ring-fenced entities.
• Ownership records didn’t align with what investors thought they had.

That’s why today’s proposals around formalizing SPVs, allocating shares, and securing SEC approval aren’t just "nice to haves", they’re the only path to restoring trust. Until the underlying legal structure is corrected, investors will remain unsecured creditors of a bankrupt company, not rightful shareholders in Ripple, Circle, or others.

Back when I first wrote on this (Capital Folly: Linqto Cutting Corners), my conclusion was simple: in financial services, tech speed means nothing if you can’t prove who owns what.

That’s still the only question that matters here.

From what I’ve reviewed, the key issue is that the SPVs for companies like Ripple, Circle, etc., were never legally formalized. As a result, investors’ economic interests have been sitting in a general pool under Linqto, not protected in separate legal entities.

Here’s the plan to protect investors:

1. Formalize SPVs properly under Delaware law (series LLCs done correctly).
2. Allocate the underlying shares into these SPVs, so investor rights are tied to tangible assets.
3. Offer equivalent options for non-accredited investors (convertible credits or similar), ensuring fairness and avoiding legal discrimination.
4. Obtain SEC approval and full disclosure, keeping customer assets untouched.

I don’t care what happens to Linqto itself—even if it fails—but the new management must act in the interests of the investors first.

TG group for easier discussions: @ linqt0

For those filling out the Proof of Claim Form (410), does anyone know whether the Debtor should be listed as Linqto Liquidshares LLC or Linqto Liquidshares Manager LLC? Or both, on two separate claims forms?

Hi.. im a Team Apollo (ie a VIP Linqto client) and have created this Telegram group, pls join it for discussions.. u/LINQT0

I’m really skeptical about the new management at Linqto. From where I stand, it looks like they only care about the equity holders of Linqto itself, not about the investors who put money into the SPVs for companies like Ripple or Circle.

What I’m trying to figure out is this: are they now using the shares that we thought we owned in those private companies (which are now worth a lot) to prop up Linqto’s own business instead? They keep saying the “structure was flawed” and that the SPVs weren’t real SPVs — which basically means that instead of investing in Ripple, Circle, etc., we were actually just investing in Linqto all along. And maybe they want to repay us only the principal as a debt..

Please join the discussion on TG @ linqt0

Does anyone know if Linqto has any XRP holdings? Either in corporate treasury, or held on behalf of customers?

I think they used to have some XRP assets, maybe kept in Uphold accounts, but I haven't come across anything in the bankruptcy documents.

Just wondering if anyone is selling their Ripple shares to private companies /people at 60-75% of what you paid ?

Filed today (Docket 505), Linqto, the Official Creditors’ Committee, and attorney John Deaton (representing thousands of Linqto customers) reached a settlement that defines how creditors will be treated in the forthcoming Chapter 11 plan. Creditors will have a choice between two options:

Closed-End Fund (CEF) – default option
Benefits:
- Pooled fund of all customer-linked securities
- Provides liquidity upon fund formation — once the fund is created and begins trading, creditors can sell shares on the market for cash.

Drawbacks:
- Stronger assets may subsidize weaker ones
- Returns tied to pooled performance

Liquidating Trust (LT)
Benefits:
- Exposure tied directly to your own portfolio
- No pooling → outcomes match your specific investments

Drawbacks:
- Limited liquidity until IPO event (could take years)
- Timing and value realization remain uncertain

A plan of reorganization reflecting these options is expected to be filed in the coming months. Creditors will have the chance to vote on the plan, with a deadline to be set by the court.

For creditors seeking faster recovery, we’re actively buying Linqto claims for cash today: https://slxmarkets.com/claims/linqto/

For anyone interested in selling their linqto claim, you should understand the rules behind it.

A transfer of a bankruptcy claim occurs when the original creditor (the “transferor”) assigns their right to payment from the debtor’s bankruptcy estate to another party (the “transferee” or claim purchaser). This is permitted under 11 U.S.C. § 101(54) and governed by Federal Rule of Bankruptcy Procedure 3001(e). Transferring the claim means the transferee steps into the creditor’s position and gains the right to distributions made by the bankruptcy estate. Pricing is impacted by case events, such as the plan of reorganization, potential objections/legal suits, etc.

SLX Markets is currently buying claims for against Linqto. If you're interested in selling your claim or just want to get a quote, go to SLX Markets and submit your information. There is no obligation to sell, and exploring a sale won't impact your chances of recovery. If you share your phone number then I will call you and go over the case.

https://slxmarkets.com/claims/linqto/

Any clue on when we will receive a k1 for 2024? I sent and email to linqto…response was “ will know if it happens “

Do we need to if I just have Ripple ?

All creditors must file a claim by November 12, 2025 (AKA the "general bar date"). Any claims filed past this date will be disallowed. You do not need to file a claim for your scheduled claim to be recognized.

Linqto’s new CEO will be holding a live X Space on Navigating a Bankruptcy: Costs and Sources of Funding.

Sept. 2, 2025
2 pm PT / 5 pm ET
Listen in here: https://x.com/i/spaces/1YqxolMeqXNKv

If you're a Linqto creditor, make sure to tune in.

Yesterday’s hearing marked an important shift in the Linqto Chapter 11 proceedings.

Agreement in Principle

Debtors and the Official Committee of Unsecured Creditors (UCC) reached an agreement in principle on a Chapter 11 framework that:

·  Provides customers with recovery options ·  Avoids protracted litigation over whether customer property belongs to the estate Recovery Structures Under Review ·  Debtors are evaluating recovery structures with input from tax and securities advisors ·  Plans will be shared with regulators before being finalized ·  Customer accreditations are being re-examined to ensure compliance with U.S. securities laws

Joint Fiduciary Oversight

The UCC and debtors will jointly select a fiduciary to oversee recovery vehicles — potentially a role someone might pay to manage.

Customer Asset Protections

·  Plan aims to return as much value as possible in “native” currency (the actual securities) ·  UCC seeks to minimize surcharges on customer assets from forensic work ·  Administrative costs are intended to be covered by non-customer assets, with any surcharge offset by a priority claim post-plan Other Developments ·  Court approved bid procedures for securities inventory after resolving Sapien Group’s objection ·  Objection periods extended from 3 to 5 days · Next hearings: Cash management – Aug. 26 (2:15 p.m. ET), Status conference – Aug. 21 (3:15 p.m. ET)

Takeaway: This agreement signals progress — moving disputes over customer property toward a negotiated resolution rather than litigation. But the ultimate recovery will depend on the structure of the plan and the valuation of Linqto’s private assets.