XRP Lawyer John Deaton Claims Linqto Users Could Receive Increased Payouts

XRP attorney John Deaton has stated that customers of the troubled Linqto platform may not only recover their full investments but could also receive more than their original capital. According to Deaton, current bankruptcy proceedings place Linqto users ahead of shareholders in the payout order.

XRP Lawyer John Deaton Says Linqto Customers Could Recover More

In a lengthy post on the X platform, John Deaton said that Linqto customers have legal priority over the platform’s shareholders in any bankruptcy proceedings. Citing his experience in over 100 corporate bankruptcies, he noted that no creditors exist who stand ahead of the customers in claim order.

He emphasized that the 11,500 Ripple SPV unit holders and other Linqto investors should be treated as beneficiaries, not shareholders.

XRP Lawyer Deaton said this structure ensured that customers must be paid before equity holders. He added that Ripple shares purchased via Linqto remain present and accounted for.

Ripple CEO Brad Garlinghouse confirmed that inqto still holds 4.7 million Ripple shares, despite some concerns over prior unauthorized sales.

According to Deaton, 3% of Ripple shares were sold without investor knowledge. However, the cash from those sales remains available. He explained that this issue will be addressed during the bankruptcy process, but it does not change the fact that the related funds are still secured.

Deaton also referenced Circle shares, which are available through Linqto’s investment vehicles. He revealed that those shares have appreciated by over 500% since initial customer purchases.

XRP lawyer presented his own case, a 30,000 investment in Circle which now, according to present share price, is valued at more than 150,000.

Linqto Bankruptcy: All Assets Accounted

The bankruptcy story dates back to violations committed by the former Linqto CEO William Sarris in that Linqto is said to have sold securities illegally. According to John Deaton, he has spoken to multiple current and former Linqto employees, board observers, and sponsored influencers.

Three former employees and three influencers stated they were unaware of the alleged violations and have personal investments at stake.

More so, the XRP lawyer emphasized that all parties involved will be required to disclose what they knew and when. This will help determine accountability throughout the process.

Despite internal disputes at Linqto, Deaton reassured customers that most of the assets remain with the platform. Shares in companies like Ripple, Circle, Kraken, SpaceX, and others are reportedly secure.

Dispute Over Refund Plan Triggers Investor Concerns

Linqto’s current leadership proposed refunding customers only their initial investment amounts. This proposal has caused concern among investors, especially those whose shares have grown in value. Deaton criticized this plan, warning that it could deny customers fair returns on high-performing assets.

According to the XRP lawyer, the difference between original capital and present value could be considerable. Using Circle shares as an example, he said that a refund of only $30,000 would strip the investor of the current $150,000 valuation.

The concern is shared among other investors who bought into companies like Ripple, which conducted a share buyback in June 2025 at $175 per share.

Also, the XRP lawyer shared that the case ought to be settled quickly to prevent the prolonged litigation. He said that a negotiated restructuring or purchase can be less than 1 year when it comes to an agreement. Once litigation extends over a two year period, however, legal expenditure may eat up more than 100 million dollars in customer value.

Court Process to Reveal Timeline, Ownership, and Responsibility

John Deaton confirmed that the court will have access to internal communications, marketing documents, and third-party contracts during the proceedings.

In addition, he clarified that Linqto platform stored assets of customers in special purpose vehicles (SPVs). This arrangement gives customers a special legal status, which distinguishes them with common shareholders or creditors.

Deaton said that this is primarily the basis of the legal right of the customers to recover in preference to the equity holders.

Provided that the current assets and ownership status are confirmed by the bankruptcy court, the clients of Linqto are likely to get more than what they initially deposited.

Meanwhile, lawyers have been closely monitoring the Ripple vs SEC lawsuit for signs of a resolution, especially after Judge Torres denied the joint motion to expedite the case. Attorney Fred Rispoli outlined two potential timelines, with one extending into 2026–2027 and another suggesting a possible conclusion by August 2025.