💥New Chapter 11 Bankruptcy Filing - Linqto Texas, LLC💥
Gross mismanagement of a private-market investment platform leads to an SEC investigation and bankruptcy cases in the Southern District of Texas
On July 7, 2025, SF-based Linqto Inc. (“Linqto”) and 3 affiliates (collectively, together with Linqto, the “debtors” and together with their non-debtor affiliates, the “company”) filed chapter 11 freefall cases in the Southern District of Texas (Judge Perez). Founded in ‘10, the company evolved over the years “ … into a leading financial technology platform that was intended to enable investors to indirectly invest in private-market startups and pre-IPO companies.”
Intended, huh?
Let’s dig in. If all had gone according to plan, (i) the company would purchase shares in private companies and transfer them to private-company-specific special purpose vehicles (“SPVs”), and (ii) the company’s customers would pay cash for membership interests in the SPVs, giving them indirect exposure to the applicable private company. Pretty straightforward, as depicted below.

Unfortunately …
In fact, there were a sh*tload of problems. First and perhaps foremost, the company — oops! — told its 13k+ customers they’d own the shares directly.
