Linqto Scandal: Pro-XRP Attorney Deaton Rejects Refunds, Fights for Fair Payouts

Attorney and XRP advocate John Deaton has warned that refunding original investments in profitable assets through Linqto could result in the platform earning massive gains at the expense of users.

Deaton, who invested $30,000 in Circle via Linqto and now values the position at $157,000, says such a refund would allow the platform to keep over $120,000 in growth that belongs to an investor.

Notably, Linqto customers are demanding answers after the investment platform froze user accounts and suspended operations on February 27, per Globenews.

Refund Plans Could Favor Platform, Not Investors

In a post on X, Deaton argues that refunding initial investments in assets like Ripple and Circle, both of which have appreciated significantly, would unfairly enrich Linqto.

Related: Wall Street Expert Identifies May 2024 as ‘Best Date’ for Ripple’s IPO

“I didn’t invest for Linqto to make a killing off my money,” he said. He emphasized that he’s prepared to challenge any plan that deprives investors of their rightful gains.

He explained that when Ripple conducted a buyback in June 2024, it offered $175 per share. Deaton’s average cost was $33. Refunding users at their entry price would allow Linqto to benefit from the share value increase that investors earned.

Major Exposé Imminent

In an earlier post, Deaton described the situation at Linqto as a “clusterfuck.” He said a detailed article investigating the platform’s operations is likely to be published in the coming days. The announcement drew attention, particularly from members of the XRP community who have used Linqto to invest in pre-IPO companies like Ripple.

Related: Ripple CEO Blows Hot, Says “Everything the SEC cares about, they lost”

Meanwhile, Rob Cunningham, founder of the advocacy group Free Linqto, said users are concerned that the company’s reserves have been drained and operations halted, possibly due to mismanagement or deliberate actions.

Linqto, known for offering investors access to private equity, including a reported 3% stake in Ripple Labs, is now facing pressure to restore transparency and protect over 14,000 users.

Failed Projects Are a Different Case, Urged Community to Beware of Opportunists

While Deaton acknowledged that some users are understandably frustrated, he drew a clear line between failed projects and profitable ones.

For example, he described Polysign as “worthless” and suggested that refunds for that investment might be warranted. But applying the same logic to successful deals would be both unfair and deceptive.

Deaton also warned that third parties may attempt to exploit the situation by preying on emotionally invested investors. He cautioned against selling out of fear or frustration, urging users to be cautious of offers that undervalue their stakes.