On February 6, 2026, the U.S. Bankruptcy Court for the Southern District of Texas confirmed Linqto, Inc. and its affiliates’ plan of reorganization, marking a significant milestone in restructuring the company and positioning it for a compliant path forward. Founded in 2010 as a technology and software development company providing services to financial technology firms, Linqto evolved into a leading financial technology platform that was intended to enable investors to indirectly invest in private-market startups and pre-IPO companies. Following a change in management in January 2025 and the subsequent suspension of operations amid concerns regarding historical regulatory compliance, Linqto filed for Chapter 11 relief in July 2025.
The plan received extraordinary support, with more than 95 percent approval from voting creditors. It also progressed on a swift timeline, achieving confirmation within approximately seven months of the filing - an unusually accelerated outcome for a complex case involving thousands of customers and significant regulatory considerations.
As special regulatory and corporate counsel, Sullivan & Cromwell delivered coordinated advice across corporate governance, enforcement and regulatory matters, broker-dealer compliance, securities law and restructuring. The Firm played a central role in structuring vehicles forming part of the novel resolution framework, which allows customers either to retain indirect interests in private companies and receive securities if they go public or to receive interests in a publicly traded closed-end fund holding private shares. Working closely with debtors bankruptcy counsel and counsel to the Official Committee of Unsecured Creditors, S&C developed the regulatory and structural components integral to confirmation of the plan.
The Firm represents Linqto in connection with criminal, civil and regulatory investigations by the U.S. Attorney’s Office for the Southern District of New York, the Securities and Exchange Commission, FINRA, and state regulators concerning potential historical violations of the federal securities laws and related compliance issues.
The S&C team that advised Linqto included Dalia Blass, Alexa Kranzley, Steve Peikin, Bill Farrar, Mario Schollmeyer and Malou Huth.