Linqto files for bankruptcy due to securities law violations, faces operating challenges.

Investment platform Linqto filed for bankruptcy due to alleged securities law violations, facing “potentially insurmountable operating challenges.” CEO Dan Siciliano stated the company discovered serious defects in its structure, raising questions about what customers actually own. This case highlights the risks in private markets, which lack regulation compared to public markets.

Linqto’s Chapter 11 bankruptcy was filed in Texas, with a debtor-in-possession financing commitment of up to $60 million from Sandton Capital Partners. This financing allows the company to operate during restructuring. The company’s troubles underscore the challenges faced by individual investors in the lightly regulated pre-IPO shares market.

Read more at Yahoo Finance: Private investment platform Linqto files for bankruptcy amid SEC scrutiny