Podcast Summary: "Celsius. FTX. Linqto. Same Story Again? Millions Lost. Garlinghouse Responds?"
Podcast Information:
- Title: On The Chain - Blockchain and Cryptocurrency News + Opinion
- Host/Authors: Jeff and Chip
- Episode Release Date: July 3, 2025
- Description: Focuses on Blockchain and Digital Assets, Cryptocurrency news, and opinion with a focus on XRP, catering to both newcomers and veterans in the space.
1. Introduction and Setting the Stage
The episode begins with Jeff welcoming listeners back to "On The Chain," announcing a deep dive into one of the most explosive stories in the crypto space—a saga reminiscent of the collapses of Celsius and FTX. The hosts express concern over the recurring pattern of platform failures, highlighting the impact on retail investors and the unsettling silence from crypto influencers.
Jeff [00:02]: "We're going to be diving into one of the most explosive stories to shake the crypto space in such a long time."
2. Technical Difficulties Interrupt the Discussion
Shortly after the introduction, Chip and Jeff encounter significant technical issues with their streaming platform, StreamYard. These interruptions hinder the flow of the conversation, leading to moments of frustration and attempts to troubleshoot the problem live.
Chip [02:01]: "I had the same trouble, Jeff."
Jeff [02:05]: "Oh, no."
3. The Collapse of Major Crypto Platforms
Despite the technical glitches, Jeff resumes the discussion, drawing parallels between the recent collapses of Celsius, FTX, and Linqto. He emphasizes the pattern of over-leveraging within the crypto industry and the resultant fallout affecting millions of investors.
Jeff [05:30]: "When you look behind the curtain and see actually, you know, who's orchestrating things... people are a little bit short on change."
4. Brad Garlinghouse Responds to the Linqto Controversy
A significant portion of the episode centers around Brad Garlinghouse, CEO of Ripple, addressing the issues surrounding Linqto's acquisition of Ripple shares. Garlinghouse clarifies that Ripple did not sell shares directly to Linqto, but rather Linqto purchased them on the secondary market. This statement aims to alleviate investor concerns about the legitimacy and implications of these share transactions.
Brad Garlinghouse [09:15]: "Link to owns 4.7 million shares of Ripple solely purchased on the secondary market from other Ripple shareholders. Never directly from Ripple."
5. Unpacking the Linqto and Ripple Shares Controversy
Jeff delves deeper into the Linqto situation, discussing how the platform marketed the purchase of Ripple shares to both accredited and non-accredited investors without clear disclosure. The hosts highlight the confusion between holding actual shares versus representative units or Special Purpose Vehicles (SPVs), which do not equate to direct ownership.
Jeff [09:45]: "The fact that these are representative units and they're not real, you're not tied to a specific share."
6. Legal and Regulatory Implications
The discussion shifts to the legal challenges facing Linqto, including potential federal investigations and bankruptcy filings. Jeff references an article from the Wall Street Journal detailing allegations of securities fraud and improper sale of Ripple shares without investor permission.
Jeff [11:10]: "There's an article in the Wall Street Journal that... they're setting their own price, they're doing... amazing to just negotiate over shares."
7. Community Reactions and Influencer Responsibilities
The hosts express disappointment over the lack of transparency from crypto influencers who promoted Linqto without fully understanding or disclosing the associated risks. They criticize the influencers for fostering FOMO (Fear of Missing Out) and not taking responsibility when the platform failed, leaving investors vulnerable.
Chip [54:28]: "They sold out and then crying about it and playing the victim."
8. Insights from John Deaton
John Deaton, a notable figure in the crypto community, provides his perspective on the Linqto collapse, referring to it as a "complete cluster." He anticipates imminent bankruptcy and highlights the magnitude of the issue, with thousands of investors left holding non-accredited SPV units instead of actual Ripple shares.
John Deaton [22:37]: "Linqto caught up in what I want to refer to as a total cluster... Indictments expected. SEC and DOJ involved."
9. Ongoing Challenges in Crypto Regulation
Jeff and Chip discuss the broader issue of regulatory uncertainty in the crypto space. They argue that the lack of clear regulations contributes to the prevalence of fraudulent activities and platform collapses, making it difficult for investors to navigate safely.
Jeff [78:03]: "Without true regulatory clarity in the space... you can't operate within the bounds of regular financial laws."
10. Community Engagement and Giveaway
Amidst the heavy discussions, Jeff and Chip engage with their audience by conducting a giveaway. Despite the technical issues, they successfully select a winner, Gary, demonstrating their commitment to community interaction.
Jeff [92:18]: "Winner, winner, chicken, dinner."
Chip [92:20]: "Freaking almost had it right before close."
11. Tangential Discussions on Politics and Economy
As the podcast progresses, the conversation veers into political commentary, discussing topics like tariffs, federal agencies, and global economic strategies. While these segments are less central to the main theme, they provide additional context on how external factors influence the crypto environment.
Chip [63:31]: "It's going to bring back the dollar, right?"
12. Conclusion and Final Thoughts
The episode concludes with Jeff and Chip reflecting on the turbulent state of the crypto market, emphasizing the need for regulatory reforms and greater transparency. They also tease future discussions and encourage listeners to stay informed and cautious in their investments.
Jeff [99:49]: "This is what kills me. And they're bringing up... it's killing me."
Notable Quotes:
- Jeff [00:02]: "We're going to be diving into one of the most explosive stories to shake the crypto space in such a long time."
- Brad Garlinghouse [09:15]: "Link to owns 4.7 million shares of Ripple solely purchased on the secondary market from other Ripple shareholders. Never directly from Ripple."
- Chip [54:28]: "They sold out and then crying about it and playing the victim and that's exactly it."
- John Deaton [22:37]: "Linqto caught up in what I want to refer to as a total cluster... Indictments expected. SEC and DOJ involved."
Key Takeaways:
- The crypto space continues to face significant challenges with platform collapses and fraudulent activities, reminiscent of past incidents like Celsius and FTX.
- Linqto’s acquisition of Ripple shares has raised serious concerns about investor safety, transparency, and regulatory compliance.
- Statements from Ripple’s CEO Garlinghouse aim to clarify misconceptions but do not fully resolve investor anxieties.
- Regulatory bodies like the SEC and DOJ are actively investigating these matters, highlighting the need for clearer crypto regulations.
- The crypto community must remain vigilant, conduct thorough research, and demand greater accountability from influencers and platforms.
Recommendations for Listeners:
- Stay informed about the latest developments and regulatory changes in the crypto market.
- Exercise caution when investing in crypto platforms, especially those offering pre-IPO shares or SPV units.
- Seek out reliable and transparent sources of information to navigate the complexities of blockchain and digital assets safely.
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