SEC Sued Linqto Founder and Former Executive
Federal regulators filed a lawsuit alleging the executives misled retail investors regarding pricing and product inventory.
Updated on Oct. 11, 2026 in Investing
Live Poll
Do you trust the pricing and availability data provided by private investment platforms?
The Securities and Exchange Commission sued Linqto founder William Sarris and former executive Joseph Endoso on October 9, 2026. The SEC alleges the pair deceived retail investors about the availability and true cost of investment products.
Why it matters
The legal action highlights federal oversight into how private-market investment platforms manage information for retail participants. It addresses concerns regarding transparency in the sale of complex assets through special purpose vehicles.
Linqto sold over $430 million in investment interests between 2021 and 2024, yielding $160 million in revenue. The company subsequently filed for bankruptcy protection in July 2025.
The players
William Sarris
He is the founder of Linqto and is named as a defendant in the SEC lawsuit.
Joseph Endoso
He is a former executive at Linqto who was sued by the SEC regarding allegations of misleading investors.
Securities and Exchange Commission
This is the primary federal regulatory agency responsible for protecting investors and maintaining fair, orderly, and efficient markets.
The details
The SEC complaint centers on allegations that the platform concealed transaction premiums and falsely claimed products were sold out to create artificial urgency. The company historically provided retail users with indirect exposure to private companies like Ripple.
Timeline
From 2021 to 2024, Linqto sold over $430 million in investment interests.
In July 2025, the platform filed for bankruptcy protection.
On October 9, 2026, the SEC initiated the lawsuit against the company's former leadership.
Market Dynamics
The lawsuit reflects a broader push by regulators to increase transparency within private market platforms that serve non-accredited retail investors. This action underscores the growing scrutiny of how secondary market intermediaries communicate risks and availability.
Retail investors who used the platform may face uncertainty regarding their existing stakes following the firm's bankruptcy filing. This case serves as a warning for those seeking private asset exposure to verify the transparency of pricing structures and product availability.
The takeaway
Investors should exercise caution when using third-party platforms to access private market deals that lack direct oversight. Always verify the fee structure and the actual underlying asset ownership before committing capital to special purpose vehicles.
Further reading
For more information on regulatory oversight in private markets, visit the Investing section.
Source note: This article includes information reported by TokenPost.
Live Poll
Do you trust the pricing and availability data provided by private investment platforms?
