XRP Shares Cannot Hit Public Market

Ripple has formally filed a Reservation of Rights to challenge Linqto’s bankruptcy strategy of converting 4.7 million Ripple shares into a publicly traded fund. This move prevents its private shares from entering the public market without Ripple’s approval.

Ripple Files Reservation of Rights

With the Reservation of Rights filing, Ripple emphasized that it remains a private company by choice and has not given consent for its shares to be traded publicly. The company highlighted that permitting such arrangements could distort Ripple’s valuation and create confusion over the ownership.

Ripple also stressed that this could jeopardize existing shareholders by introducing artificial market activity, which is not authorized by the company itself.

Ripple’s legal filings signal a willingness to cooperate with Linqto, but this cannot come at the expense of the company’s chosen private status. This recent intervention will likely shape Linqto’s bankruptcy proceedings and will also bring clarity to investor protection in the private equity market.

Court Hearing in Linqto Case

Linqto has a court hearing scheduled for October 3, 2025, before Judge Alfredo Perez in the Texas Southern District Court. It will determine the trajectory of Linqto’s bankruptcy restructuring, including financial approval and control, and the use of Ripple-related sale proceeds.

The court’s decision will shape how assets linked to Ripple shares are managed and how customer claims are addressed in Linqto’s Chapter 11 process. The ongoing Federal investigation around asset ownership and distribution, and Linqto’s securities practices, will be addressed in the hearing to produce an ultimate legal resolution. It may also settle the uncertainty regarding investors’ pending funds following the bankruptcy.

During its previous court hearing in August 2025, the court blocked Linqto’s attempt to use customer-owned Ripple shares as collateral for a $60 million loan, thanks to the legal intervention by crypto lawyer John E. Deaton.

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