Crypto Reporter: Former Linqto CEO Faces Class Action Lawsuit for Securities Fraud
Powered by ChatGPTOn July 10th, according to crypto reporter Eleanor Terrett, lawyer John Deaton has filed a securities fraud class action lawsuit on behalf of thousands of retail investors against Linqto founder and former CEO William Sarris. The lawsuit alleges that Sarris orchestrated a multi-year fraud scheme, selling shares of private companies such as Ripple, Uphold, and Kraken on the Linqto platform through special purpose vehicles (SPVs) via undisclosed markups (up to 60%), misleading waivers, and unlicensed sales tactics. According to the lawsuit, Sarris ignored internal legal memos in 2023 and 2024 warning that the products violated multiple U.S. Securities and Exchange Commission (SEC) and Financial Industry Regulatory Authority (FINRA) rules, including acting as an unregistered broker-dealer and operating an unregistered investment company. [Deep Tide TechFlow]