SEC Sued Linqto Execs Over Investment Disclosures
Federal regulators alleged the platform misled retail investors about pricing and product availability.
Updated on Oct. 11, 2026 in Investing
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The Securities and Exchange Commission filed a lawsuit against Linqto founder William Sarris and former executive Joseph Endoso on Oct. 9, 2026. The regulators allege the platform concealed premiums and misled retail investors regarding the availability of investment products.
Why it matters
The SEC action highlights risks associated with indirect exposure to private companies through special purpose vehicles. Investors often lack transparency into the fee structures and actual inventory levels when using such platforms, which can significantly impact potential returns.
Linqto sold more than $430 million in investment interests from 2021 to 2024, generating $160 million in revenue. The platform filed for bankruptcy protection in July 2025.
The players
Securities and Exchange Commission
The federal agency responsible for protecting investors and maintaining fair, orderly, and efficient markets.
William Sarris
The founder of the investment platform Linqto who is named as a defendant in the SEC lawsuit.
Joseph Endoso
A former executive at Linqto who was sued by the SEC regarding alleged disclosure failures.
The details
The SEC alleges that the platform sold investment interests through special purpose vehicles while misrepresenting product availability and hiding premiums from buyers. By falsely presenting products as sold out and masking true costs, the firm reportedly influenced retail investor behavior. The company subsequently filed for bankruptcy protection in July 2025 following these operations.
Timeline
Linqto sold investment interests from 2021 to 2024.
The platform filed for bankruptcy protection in July 2025.
The SEC filed the lawsuit on Oct. 9, 2026.
Money Landscape
This litigation highlights the ongoing regulatory scrutiny of platforms offering access to private markets. It follows a consistent trend of SEC enforcement actions against firms failing to meet the disclosure standards required by the Securities Act of 1933.
Retail investors who used the platform should review their account documentation to assess potential exposure following the firm's July 2025 bankruptcy. If you have concerns about your holdings, consult with a qualified financial or tax professional to understand your rights in the liquidation process.
The takeaway
The SEC case serves as a reminder to verify the fee structures and true asset availability when using secondary market platforms. Monitor bankruptcy court filings for updates on claims processes if you were an investor on the platform.
Further reading
For more on managing risks, visit our guide to Investing.
Source note: This article includes information reported by TokenPost.
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Do you trust the pricing and availability data provided by private investment platforms?
