Bankrupt Fintech Linqto Agrees to Repay Customers Misled on Private Investments

Bloomberg.com reports that collapsed financial technology startup Linqto Inc. has reached an agreement to repay customers who were misled about their access to stakes in hard-to-acquire private companies. The company, which filed for bankruptcy this summer, misrepresented the nature of the assets it held, a factor that contributed to its downfall. Launched in 2020, Linqto aimed to democratize access to private markets by offering holdings in sought-after technology companies typically unavailable to the public before an IPO. However, the company's failure stemmed from misrepresenting these holdings, promising clients access to investments it did not actually possess. This deception ultimately led to the fintech startup's collapse and subsequent bankruptcy. The newly agreed-upon deal is intended to provide restitution to the customers affected by these misleading promises, according to the report.