Ripple CEO Brad Garlinghouse has noted the distinction between XRP and Ripple shares amid the controversy surrounding Ripple’s pre-IPO shares and the Linqto platform.
This clarification comes in response to investor concerns fueled by regulatory investigations into Linqto and its sale of so-called “representative units” of Ripple stock. Garlinghouse reiterated that Ripple has no business relationship with Linqto and did not directly issue any shares to the platform.
In his latest post, Garlinghouse clarified that XRP and Ripple equity are fundamentally different. He stated that his comments were strictly in reference to Ripple equity, not XRP tokens.
Ripple Confirms Linqto Holds 4.7M Shares
According to Garlinghouse, Linqto owns 4.7 million Ripple shares. However, the platform acquired those shares from other shareholders via the secondary market. He highlighted this figure to reassure investors that Ripple is aware of how many of its shares Linqto currently holds.
Garlinghouse made it clear that Ripple is not involved in how Linqto structured its offerings or manages the investors who purchased those shares.
He also admitted he has “no idea” how Linqto handled participants to whom it sold Ripple share units. In effect, it cannot vouch for the company’s business practices.
Essentially, Garlinghouse distanced Ripple from any potential legal or financial consequences tied to Linqto’s operations, which are currently under investigation by U.S. authorities.
Okay, it seems my post has raised a few more questions – first off, XRP and shares of Ripple are very different things. This post is ONLY about shares in Ripple. Linqto is a very separate company that bought shares in Ripple from some of our existing shareholders. It should be…
— Brad Garlinghouse (@bgarlinghouse) July 2, 2025
Good News for Linqto Unitholders?
Despite the controversy, Garlinghouse noted that the value of Ripple shares has increased significantly over time. In parallel, investors who gained exposure through Linqto’s units may still see strong returns, provided Linqto fulfills its side of the transactions.
For context, just last month, Ripple launched a $700 million tender offer to repurchase shares at $175 each, a 135% premium over recent private market prices. The offer, open from June 10 to July 9 via Nasdaq Private Market, applies to holders of eligible vested stock or options. It follows a January buyback at $125 per share.
Calls for Refunds
Amid ongoing controversy surrounding Linqto, some have called for the platform to refund users. However, pro-XRP attorney John Deaton disagreed with refunding investments at their original cost. He argued that doing so would unfairly enrich the platform.
Deaton, who invested $30,000 in Circle (now worth $157,000), said such a move would allow Linqto to pocket investor profits. He called this unjust, especially in light of Ripple’s ongoing $175 per share buyback, noting that his average cost was just $33.
Regrading Linqto, it depends on the investment, I guess. If people got their money back for Polysign it would be a great deal because Polysign is worthless.
But what about Ripple and Circle?
I invested $30K in Circle on the @linqtoinc platform. My investment today is worth… https://t.co/wnXQlyBa40
— John E Deaton (@JohnEDeaton1) June 30, 2025
Notably, Linqto froze user accounts and suspended operations in February, prompting backlash from more than 14,000 users.
As scrutiny intensifies, Ripple is safeguarding its reputation by clearly distinguishing its operations from those of third-party platforms offering access to its pre-IPO equity.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
