Ad Hoc Stakeholders Committee Files Motion for Joinder to Linqto Founder’s Explosive Objection in FinTech Firm’s Chapter 11 Case
HOUSTON, Jan. 21, 2026 (GLOBE NEWSWIRE) -- Several members of the Linqto Ad Hoc Stakeholders Committee have today filed a Joint Motion for Joinder to the Objection to Linqto’s Chapter 11 plan submitted by Linqto founder earlier this week.
On January 19, 2026, William Sarris, the Founder and former CEO of Linqto, filed a sweeping objection in Chapter 11 Case No. 25-90186 (Linqto Texas, LLC, et al.), alleging that the company’s current management engineered a bankruptcy not out of necessity, but for self-enrichment — while deliberately withholding critical, exculpatory evidence from both the Court and Linqto’s customers.
Linqto is a financial technology platform that enabled more than 14,000 investors worldwide to access late-stage, privately held pre-IPO companies. According to the objection, the Chapter 11 filing was not a legitimate reorganization, but a strategic maneuver designed to seize control of over $1 billion in customer-owned assets — despite the fact that Linqto was solvent, profitable, and expressly structured to keep customer assets bankruptcy-remote.
In the months leading up to bankruptcy, Linqto had completed 56 consecutive profitable months, held approximately $40 million in assets, carried no debt, and possessed substantial equity. None of those facts were presented to the Court as justification for the filing.
Central to the objection is Linqto’s Series LLC / SPV structure, which was intentionally designed to protect customer investments from corporate insolvency. A formal “True Sale” legal opinion issued in 2024 by Nelson Mullins — supported by RSM and Deloitte — concluded that customer assets are not property of the bankruptcy estate.
According to the filing, current management withheld the existence of this True Sale opinion from the Judge, depriving the Court of powerfully exculpatory evidence that directly contradicts the core premise of the bankruptcy.
“With over $1 billion in customer-linked assets at stake and more than 13,000 customers affected, the Linqto bankruptcy has become a flashpoint for a broader question the Court — and the public — must now confront plainly,” said Rob Cunningham, Co-Chair of the Ad Hoc Stakeholders Committee. “Ultimately, this bankruptcy court judge will determine if this is a bankruptcy of necessity or convenience enabled by silence, omission, and the suppression of material truth.”
CONTACT: Rob Cunningham +1 (404) 518-2481
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