Linqto Bankruptcy: Court Permits Sale of Stakes Worth Over 500 Million Dollars

A US bankruptcy court has granted permission for the sale of stakes valued at more than $500 million as part of the Linqto bankruptcy proceedings, opening the door for investors holding positions in private fintech and technology companies to find liquidity.

Linqto, which operated as a platform allowing accredited investors to buy and sell shares in pre-IPO companies, filed for bankruptcy after facing financial difficulties. The court ruling permits the orderly disposal of the company's portfolio of private company stakes.

The case highlights the risks inherent in the private secondary market for pre-IPO shares, where liquidity can evaporate quickly when market conditions shift. The outcome will be closely watched by other platforms operating in the private share trading space.