Linqto has received U.S. Bankruptcy Court approval to sell approximately $130 million worth of private Ripple shares. The pre-IPO investment platform continues its Chapter 11 restructuring. This deal is part of a wider recovery process for thousands of customers who invested in private companies through the platform.
Major Institutions Buy Ripple Shares
The reported transaction includes Galaxy Digital buying $60 million in Ripple shares. Arrington Capital is buying $50 million. The Private Shares Fund is buying $16 million, and GAM Alternatives Lux is buying $4 million.
🚨 Court just approved Linqto’s sale of $130M in Ripple private shares.
Galaxy Digital, Arrington Capital, Private Shares Fund & GAM Alternatives stepping in as buyers. Ripple waived ROFR institutions are still lining up for $XRP exposure at private valuations. 👀 pic.twitter.com/ClRG18ycE6
— 𝗕𝗮𝗻𝗸XRP (@BankXRP) July 20, 2026
Ripple has reportedly waived its right of first refusal, allowing the transfers to proceed. The deal reflects continued institutional demand for exposure to Ripple’s private-market valuation. However, it does not mean Ripple is going public. The transaction has no direct impact on $XRP holders or $XRP ownership.
The proceeds will support customer recoveries as Linqto winds down its operations.
Linqto Bankruptcy Plan Was Backed by Customers
Linqto filed for Chapter 11 in July 2025 after new management uncovered potential securities-law violations dating back to 2020. This included issues involving the structure of special-purpose vehicles used for customer investments.
The platform had already shut down in March 2025. Its bankruptcy case involves investments linked to around 111 private companies, with the portfolio valued at more than $500 million.
On February 6, 2026, the court approved Linqto’s restructuring plan after roughly 95% of voting customers supported it. The plan offered customers recovery through a liquidating fund holding indirect private-company interests. Alternatively, it offered a publicly listed closed-end fund holding private shares, or a combination of both options.
Forge Dispute Threatens to Delay Customer Recoveries
The recovery process has now run into another legal challenge. According to Bloomberg Law, Linqto and its creditors have sued Forge Global Holdings. The private-market platform allegedly attempted to withdraw as trustee of the customer recovery trust just five days before Linqto planned to launch the trust on July 20.
Forge was expected to hold customer assets, manage transfers and help administer the recovery plan. According to the complaint, Forge cited demands from its new parent company, Charles Schwab, for its decision to back out.
Linqto and the Official Committee of Unsecured Creditors are asking the bankruptcy court to force Forge to honor its agreement. They want Forge to continue serving as trustee.
The dispute could delay asset transfers, increase legal costs and slow customer recoveries. For Linqto users with indirect exposure to Ripple, the case is about how and when their assets are administered. It is not about the validity of Ripple shares or the value of $XRP itself.
