(Bloomberg) — Collapsed fintech startup Linqto Inc. won court permission to try to sell valuable stakes in hard-to-acquire, private companies so it can fund its bankruptcy case. Linqto did not list which securities it would try to liquidate, but said they would come from a portfolio worth more than $500 million. It had acquired the stakes for itself and customers before the online investment platform shut down and filed bankruptcy while being investigated by federal regulators. The firm’s demise highlights the dangers to retail investors of buying stakes in illiquid and hard-to-value assets. It comes just weeks after President Trump signed an executive order that will make it easier for 401(k) participants to invest in private markets, which have minted fortunes for some and ended in huge losses for others. Linqto, which began offering private investments in 2020, was part of a wave of financial companies that claimed to make private markets more accessible. Its offerings — which included stakes in crypto startup Ripple and AI firm CoreWeave Inc. — drew in individuals attracted to the allure of private markets. The US Securities and Exchange Commission is investigating Linqto and whether former managers failed to verify if some of its customers were accredited investors with sufficient financial backing to invest through the company. Linqto had told its 13,600 customers that they could buy stakes in some of the hottest private companies before the firms went public, something that’s typically available only to big institutions. That turned out to be wrong, Linqto bankruptcy attorney Samuel A. Schwartz said in court last month. In reality, the securities could not be transferred directly to customers for various technical reasons, including regulatory limits, the company has said. Among the positions claimed by Linqto in court papers are a $399 million stake in Ripple, $35 million of Space Exploration Technologies Corp. equity and $106.6 million worth of shares in publicly held fintech Circle Internet Group Inc. As part of the bankruptcy case, Linqto’s new managers will avoid an expensive court fight over who has title to the securities, which is a complicated question tied to federal rules for accredited investors, Schwartz said during a court hearing Tuesday in Houston. No sale would be final until customers have a chance to claim ownership of any of the securities, according to court documents. The case is Linqto Texas, LLC, 25-90186, US Bankruptcy Court, Southern District of Texas. –With assistance from Neil Callanan. (Adds details in the third and seventh paragraphs.) More stories like this are available on bloomberg.com ©2025 Bloomberg L.P. in a formal or creative style for better SEO.Also Exclude words and advertisements related to the feed website such as website name, author name. You must only respond with the modified content. Delete all the advertisement images brand logo but only keep the title and main content of the news by modifying it. You must only respond with the modified content. Block any jump outside of the site adarshnews.com. Basically remove any content or link related to original site. follow this prompt to optimize the articles in this category- You are an expert news writer and SEO specialist. Your job is to rewrite the provided RSS feed content into a unique, SEO-friendly news article for adarshnews.com. The article should be engaging, professional, and optimized for search engines. Follow these steps: 1. **Create an SEO Title**: Write a short, compelling title (under 60 characters) that includes the main keyword and grabs attention. 2. **Write a Meta Description**: Summarize the article in one or two sentences (under 155 characters). Make it engaging and include the primary keyword naturally. 3. **Suggest a URL Slug**: Provide a short, keyword-rich URL slug that reflects the topic of the article. 4. **Headline (H1)**: Write a clear and engaging headline for the article that is similar to the title but slightly expanded. 5. **Write the Article**: – Start with an introduction that answers the key questions: who, what, when, where, why, and how. – Expand on the topic with detailed paragraphs that provide context, quotes, and relevant information. – Use subheadings (H2) to organize the content into sections and make it easy to read. – Include related keywords naturally throughout the article. – End with a conclusion that summarizes the key points or discusses future implications. 6. **Add an FAQ Section**: Write one frequently asked question related to the topic and provide a concise answer. Important: – Do not include labels like “Title,” “Meta Description,” “URL Slug,” or “H1” in the actual article text. – Keep all SEO elements separate from the main content. – Ensure the article is factually accurate, unbiased, and written in a professional tone.
A financially distressed fintech company plans to sell its rare shares in private enterprises.
