Business · Stock markets · published 2026-10-11 · via GN Crypto / Cointelegraph

SEC Accuses Linqto Founder and Ex-Executive of Defrauding Retail Investors

The SEC filed charges against Linqto founder William Sarris and former executive Joseph Endoso, alleging they misled thousands of retail investors who bought private-company exposure through the platform. Between 2021 and 2024, a Linqto subsidiary reportedly sold over $430 million in special purpose vehicles, with the SEC claiming most offerings were priced above fair value and some were falsely described as sold out. The complaint also alleges unregistered securities sales to unaccredited investors and seeks officer and director bans, disgorgement, interest, and civil penalties.

Expanded Detail

The SEC filed its case on Oct. 9 in the Northern District of California. Investigators from the FBI and the U.S. Attorney’s Office for the Southern District of New York helped. Linqto, based in San Jose, had earlier drawn attention over its Ripple connection, which Ripple severed amid a Justice Department probe.

From 2021 through 2024, a Linqto unit reportedly issued over $430 million in vehicles holding private-company stakes. Regulators say pricing was presented as market-based or automatic, but staff allegedly set it by hand. The complaint also claims some buyers lacked accredited status and that the platform operated unregistered investment companies. The SEC seeks bans, repayment, interest, and penalties; the defendants can contest the allegations.

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