(July 11, 2025, San Diego, California)
LINQTO, INC. and LINQTO TEXAS, LLC
On July 7, 2025, Linqto, Inc. and its affiliated entities (“Linqto”) filed a Chapter 11 petition in bankruptcy in the U.S. Bankruptcy Court for the Southern District of Texas.
According to the Wall Street Journal, Linqto, a once popular pre-IPO investing platform is under investigation by both the Securities and Exchange Commission and the Justice Department regarding whether Linqto failed to adequately disclose its pricing practices to customers and whether its former chief executive officer sold shares customers thought they owned without telling them. See, Linqto Files for Bankruptcy – WSJ.
Linqto’s bankruptcy petition estimates the number of creditors as between 10,001 and 25,000. Unsecured creditors listed on Linqto’s petition include among many others, ELEMENT GLOBAL TECH PVT PORTFOLIO LTD and DIVERSIFIED ALTERNATIVE OPPORTUNITY FUND, LP.
Most investors who purchased securities related to Liniqto did so via products known as Special Purpose Vehicles (“SPV”). SPVs are investment vehicles where a group of investors join together to purchase a certain investment or a certain type of investment. The investors do not own the investment directly, but instead own a proportionate share of the SPV. SPVs are commonly used for things such as investing in private, pre-IPO shares of certain companies. While claiming to be democratizing such markets, these vehicles are typically highly speculative often victimize smaller retail investors.
Investors who purchased an SPV or any other securities relating to Linqto are urged to contact our office for a free consultation.