XRP lawyer John Deaton has sued Linqto founder, Sarris, over alleged securities fraud involving private firms like Ripple, Uphold, and Kraken.
The lawsuit claims Sarris sold shares through unregistered SPVs, ignored legal warnings, and charged high hidden fees while exploiting regulatory exemptions.
Linqto is under bankruptcy protection in Houston, accused of misleading customers about ownership in private firms, leading to over $500 million in inflated holdings.
Regulators like the SEC and FINRA are investigating Linqto, with shareholders challenging the bankruptcy reorganization plan, setting the stage for a legal battle over the company's future.