- Deaton sues Linqto founder Sarris for illegal crypto stock sales tactics harming retail investors after bankruptcy filing.
- Lawsuit alleges 60% share overpricing, fake SEC/FINRA exemptions, and illegal sales methods targeting XRP community.
Crypto lawyer John Deaton has filed a lawsuit against William Sarris, founder of investment platform Linqto. The legal action targets alleged illegal tactics affecting investors. Deaton, known for representing XRP holders in the SEC versus Ripple case, submitted this class-action complaint on July 9.
I’ll hold a spaces on X this evening to discuss. The Complaint will be posted on @CryptoLawUS. Law firms who file securities class action lawsuits were going to file once they learned the facts. Now that I’ve filed, if there is any settlement of any kind I can fight for IT ALL to… https://t.co/rIbwQ3GBSK
— John E Deaton (@JohnEDeaton1) July 9, 2025
The lawsuit claims Sarris employed unlawful methods. These methods involved selling cryptocurrency company shares to individual investors using incorrect information and unfair pricing. The stocks marketed included those of firms such as Ripple, Uphold, and Kraken.
Specific accusations appear in the filing
Linqto allegedly charged investors 60% above the actual share value. The company reportedly created improper exemptions to bypass FINRA and SEC rules. Its sales techniques also broke investor protection laws according to the complaint.
Deaton personally sued Sarris following Linqto’s bankruptcy filing. This approach circumvents bankruptcy protections. It also blocks intervention by other law firms. The lawyer seeks maximum fund recovery for affected Linqto users while preventing reduced monetary settlements.
On social media platform X, Deaton announced two plans. He will publish the complete legal complaint. He will also host a discussion about the lawsuit.
shame on @digitalassetbuy for pushing this linqto nonsense onto the xrp community.
— HeyoWhatUp (@realHeyoWhatUp) July 9, 2025
Deaton referenced communications with Linqto’s leadership team. This included talks with the founder, senior executives, board members, and platform promoters. Responses varied. Some parties claimed ignorance of misconduct while others directly accused founders of fraud.
He also stated that with the bankruptcy, a reorganization plan could take effect within one year.
This requires both stakeholder groups to reach an agreement. If no agreement occurs, litigation costs may exceed $150 million and take up to two years.
