XRP Lawyer Sues Linqto Founder
XRP Lawyer John Deaton Sues Linqto Founder for Fraudulent Stock Sales
Prominent crypto lawyer and XRP advocate John Deaton has filed a class-action lawsuit against William Sarris, founder and CEO of Linqto, alleging fraudulent sales of securities related to cryptocurrency companies. Linqto, an investment platform, is not a cryptocurrency company itself, but the lawsuit claims its actions significantly impacted the crypto community.
Deaton's Allegations Against Linqto
The lawsuit alleges that Linqto engaged in several unlawful practices, including:
- Excessive Markups: The company allegedly applied markups as high as 60% on stocks of companies like Ripple, Kraken, and Uphold.
- Misleading Exemptions: Deaton claims Linqto created misleading exemptions to circumvent securities regulations.
- Illegal Sales Tactics: The lawsuit alleges the use of unlawful sales methods to entice investors.
- SEC/FINRA Violations: Deaton asserts Linqto knowingly violated Securities and Exchange Commission (SEC) and Financial Industry Regulatory Authority (FINRA) regulations.
This lawsuit comes after Linqto recently filed for Chapter 11 bankruptcy. By targeting Sarris directly, Deaton aims to bypass any bankruptcy protections that might shield the company and recover funds for investors.
Impact on the Crypto Community
The lawsuit has resonated strongly within the crypto community, particularly among XRP supporters, as several firms promoted Linqto to this audience. Deaton's reputation as a pro-crypto litigator lends weight to the case and fuels hopes for a positive outcome for affected investors. The case underscores the need for robust consumer protection measures within the cryptocurrency industry.
The Importance of Blockchain Security
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