Galaxy Digital is acquiring $60 million in Ripple shares as part of a U.S. Bankruptcy Court-approved sale of approximately $130 million in private Ripple equity held by Linqto, the bankrupt pre-IPO investment platform. The transaction, cleared under Linqto's Chapter 11 restructuring, allocates shares to four institutional buyers with Arrington Capital purchasing $50 million, the Private Shares Fund buying $16 million, and GAM Alternatives Lux acquiring $4 million. Ripple waived its right of first refusal to allow the transfers. The sale stems from Linqto's July 2025 bankruptcy filing after new management uncovered potential securities-law violations dating back to 2020 involving the structure of special-purpose vehicles used for customer investments. The transaction reflects sustained institutional demand for Ripple Labs equity—the company behind the XRP Ledger—even as the sale occurs under distressed conditions, with proceeds supporting customer recoveries as Linqto winds down operations.
Galaxy Digital Acquires $60 Million Block in Four-Buyer Transaction
Galaxy Digital holds the largest allocation in the sale at $60 million. Arrington Capital follows with $50 million, the Private Shares Fund is purchasing $16 million, and GAM Alternatives Lux is buying $4 million. The sale involves equity in Ripple Labs, not XRP tokens directly. The transaction has no direct impact on XRP holders or XRP ownership.
Linqto's investment vehicle, LiquidShares, held approximately 4.7 million Ripple shares as part of a portfolio spanning 111 private companies valued at over $500 million, according to court documents. The $130 million Ripple share sale is the largest single asset disposition in the bankruptcy.
Linqto Filed Chapter 11 in July 2025 After Discovering Securities Violations
Linqto filed for Chapter 11 in July 2025 after new management uncovered potential securities-law violations dating back to 2020 involving the structure of special-purpose vehicles used for customer investments. The platform had shut down in March 2025.
On February 6, 2026, the court approved Linqto's restructuring plan with roughly 95% customer support. The plan offers recovery through a liquidating fund, a publicly listed closed-end fund, or a combination of both. The proceeds from the Ripple share sale will support customer recoveries as Linqto winds down its operations.
Linqto Sues Forge Global After Trustee Withdrawal Attempt
Linqto and its Official Committee of Unsecured Creditors have sued Forge Global Holdings after the private-market platform allegedly attempted to withdraw as trustee of the customer recovery trust just five days before the planned July 20 launch, according to Bloomberg Law. Forge cited demands from its new parent company, Charles Schwab, for the decision to pull out.
Linqto is asking the court to compel Forge to honor its agreement. The dispute remains before the bankruptcy court with no hearing date publicly set. The recovery trust launch and customer distributions depend on the court's resolution of the Forge dispute.
FAQ
What did Galaxy Digital acquire in the Linqto bankruptcy sale?
Galaxy Digital acquired $60 million in Ripple Labs shares as part of a U.S. Bankruptcy Court-approved sale of approximately $130 million in private Ripple equity held by Linqto. The transaction involved four institutional buyers with Arrington Capital purchasing $50 million, the Private Shares Fund buying $16 million, and GAM Alternatives Lux acquiring $4 million.
Why did Linqto file for Chapter 11 bankruptcy?
Linqto filed for Chapter 11 in July 2025 after new management uncovered potential securities-law violations dating back to 2020 involving the structure of special-purpose vehicles used for customer investments. The platform had shut down in March 2025 before the bankruptcy filing.
What is the dispute between Linqto and Forge Global?
Linqto and its Official Committee of Unsecured Creditors sued Forge Global Holdings after Forge allegedly attempted to withdraw as trustee of the customer recovery trust just five days before the planned July 20 launch. Forge cited demands from its new parent company, Charles Schwab, for the decision. Linqto is asking the court to compel Forge to honor its agreement.
