Key Takeaways
- • U.S. Bankruptcy Court approved a $130 million sale of private Ripple shares by Linqto, a pre-IPO investment platform undergoing Chapter 11 restructuring, with proceeds directed toward customer recovery.
- • Galaxy Digital is the lead institutional buyer, acquiring $60 million in Ripple shares, joined by Arrington Capital ($50 million), Private Shares Fund ($16 million), and GAM Alternatives Lux ($4 million).
- • Ripple waived its right of first refusal, enabling the share transfers to proceed without blocking the institutional capital inflow to the private-market valuation.
- • The transaction reflects sustained institutional demand for Ripple exposure but carries no direct implications for XRP token holders or XRP ownership structure.
- • Linqto's court-approved restructuring plan (backed by approximately 95% of voting customers in February 2026) offers recovery through a liquidating fund, publicly listed closed-end fund, or hybrid options as the platform winds down operations.
Summary
Linqto, a pre-IPO investment platform, has secured U.S. Bankruptcy Court approval to liquidate approximately $130 million in private Ripple shares as part of its Chapter 11 restructuring process. The sale represents a significant institutional capital deployment into Ripple's private-market equity, with Galaxy Digital emerging as the lead buyer, acquiring $60 million of the total offering. Three additional institutional investors participated: Arrington Capital committed $50 million, Private Shares Fund acquired $16 million, and GAM Alternatives Lux purchased $4 million.
Ripple's decision to waive its contractual right of first refusal enabled the share transfers to proceed smoothly, signaling corporate acceptance of the institutional transaction. The deal structure underscores the continued appetite among sophisticated investors for exposure to Ripple's private valuation, which remains distinct from the public XRP cryptocurrency market. Notably, this sale carries no direct consequences for XRP token holders, as the transaction involves equity stakes in Ripple Labs rather than the company's native digital asset.
Linqto filed for Chapter 11 protection in July 2025 following management's discovery of potential securities law violations dating to 2020, related to special-purpose vehicle structures used for customer investments. The platform had previously suspended operations in March 2025. Its bankruptcy portfolio encompasses investments linked to approximately 111 private companies, with total portfolio value exceeding $500 million. In February 2026, the court approved Linqto's formal restructuring plan after securing support from roughly 95% of voting customers. The approved plan offers affected customers three recovery pathways: direct participation in a liquidating fund holding indirect private-company interests, investment in a publicly listed closed-end fund holding private shares, or a combination of both options. Proceeds from the Ripple share sale will support the overall customer recovery process as Linqto executes its wind-down operations.
Ripple's decision to waive its contractual right of first refusal enabled the share transfers to proceed smoothly, signaling corporate acceptance of the institutional transaction. The deal structure underscores the continued appetite among sophisticated investors for exposure to Ripple's private valuation, which remains distinct from the public XRP cryptocurrency market. Notably, this sale carries no direct consequences for XRP token holders, as the transaction involves equity stakes in Ripple Labs rather than the company's native digital asset.
Linqto filed for Chapter 11 protection in July 2025 following management's discovery of potential securities law violations dating to 2020, related to special-purpose vehicle structures used for customer investments. The platform had previously suspended operations in March 2025. Its bankruptcy portfolio encompasses investments linked to approximately 111 private companies, with total portfolio value exceeding $500 million. In February 2026, the court approved Linqto's formal restructuring plan after securing support from roughly 95% of voting customers. The approved plan offers affected customers three recovery pathways: direct participation in a liquidating fund holding indirect private-company interests, investment in a publicly listed closed-end fund holding private shares, or a combination of both options. Proceeds from the Ripple share sale will support the overall customer recovery process as Linqto executes its wind-down operations.
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