Linqto, a leading financial technology platform providing accredited investors access to late-stage, privately held companies, today provided an update on ongoing regulatory investigations and business operations.
On March 14, 2025, Linqto issued a press release announcing the following:
- A new senior leadership team had been appointed to run the Company and this team had been conducting an internal investigation into the Company’s operations and regulatory compliance practices under prior leadership;
- In connection with these changes, several prior executives were removed from their roles; and,
- Because of the severity of the regulatory violations, the new senior leadership team paused transactions on the platform until the compliance situation could be clarified.
Over the last few weeks, new leadership and outside legal counsel have continued the internal investigation, which was initiated in response to two ongoing regulatory investigations, including by the Securities and Exchange Commission (SEC). As a result of these investigations, new leadership has uncovered a significant number of serious securities law violations. In addition, new leadership has learned that, more than 16 months ago, prior management was made aware of these violations by counsel and did not appropriately address the underlying issues. As a result, the Company now faces significant regulatory risk and uncertainty.
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In recognition of its obligations to Linqto shareholders, Linqto employees, and the thousands of investors on the Linqto platform, the Company is cooperating with the SEC and other regulators. Despite these issues, we have confirmed that Linqto’s investment fund is properly listed on the capitalization table of the companies and funds listed on our platform. We can confirm that client transactions on the platform were executed and associated with client accounts. In an abundance of caution, we have hired an independent third-party analyst to confirm this analysis.
“Much of what we discovered about the prior business practices at Linqto is disturbing,” said Dan Siciliano, Linqto’s Chief Executive Officer. “These practices aren’t small one-off, compliance or common regulatory missteps. We found a lack of a compliance culture as well as systematic and pervasive issues that had remained unaddressed, in some cases for years, and now require serious corrective action.”
“Despite the rampant misinformation in circulation, the seriousness of the regulatory violations cannot be overstated. We paused trading on the platform because continued trading would have only exacerbated the existing securities law violations.”
“Linqto’s top priority is to protect the integrity of our clients’ investments. By prioritizing this obligation to our clients, we think we best serve Linqto’s shareholders. I also want to reaffirm our commitments to providing access to the private markets and serving both our current and future clients.”
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