Linqto, a global investing platform designed to give accredited investors indirect access to investments in private companies and unicorns, has filed for Chapter 11.
The proceedings concern Linqto, Inc., along with Linqto Texas LLC, Linqto Liquidshares LLC, and Linqto Liquidshares Manager LLC (collectively, “Linqto”).
Linqto filed for voluntary Chapter 11 proceedings in the U.S. Bankruptcy Court for the Southern District of Texas.
“After carefully evaluating Linqto’s alternatives, the Board of Directors made the decision that seeking a court-supervised restructuring was in the best interests of all Linqto customers to preserve, protect, and maximize the value of Linqto’s assets for the benefit of its stakeholders,” said Dan Siciliano, Linqto Chief Executive Officer.
“Linqto cannot continue to operate under existing conditions without restructuring. The company faces potentially insurmountable operating challenges as a result of serious alleged securities law violations and related ongoing investigations by the Division of Enforcement of the U.S. Securities and Exchange Commission as well as other regulatory agencies. In addition, Linqto recently discovered several serious defects in the corporate formation, structure, and operation of the business that raise questions about what customers actually own and which management believes can only be fairly and effectively addressed through restructuring.
“When the new management team was hired in early 2025, we made it clear that there can be no path forward that preserves value of customer interests without remediating alleged securities laws violations from prior management and not breaking the law. Despite reducing expenses, the only way forward is to seek court-supervised protection that will let us restructure the business into a profitable, law-abiding organization while resolving the ongoing regulatory investigations faster,” said Mr. Siciliano.
Linqto has filed customary motions with the Court seeking a variety of “first day” relief, including the authority to continue to pay essential employee wages and benefits, among other traditional reorganizational relief. Linqto expects to receive Court approval for these requests.
Linqto has hired bankruptcy and restructuring veteran Jeffrey S. Stein, Managing Partner at Breakpoint Partners LLC, as Chief Restructuring Officer.
