Ripple’s Linqto Settlement: Customers’ Assets Safe from Loan Plan

A major development emerged in the bankruptcy proceedings of Linqto, a private investment platform that used customer shares as collateral for a $60 million loan. Today, during a court hearing, both counsel representing the debtor and creditors reached a settlement agreement to cancel this plan. The cancellation comes after Ripple’s lawyer, John E. Deaton, secured a victory by advocating for a constructive trust to protect Linqto customers’ assets. Linqto had faced scrutiny due to its use of customer shares as collateral for the loan, raising concerns about potential financial exploitation.