Bankrupt Fintech Cuts Deal Over Hard-to-Get Private Shares (1)

Collapsed fintech startup Linqto Inc. agreed to a deal to repay customers who were wrongly promised that they could get stakes in hard-to-acquire, private companies.

Linqto, which began offering private investments in 2020, was part of a wave of financial companies that claimed to make private markets more accessible with holdings in some of the hottest technology firms. Instead, it misled customers about what it really owned, before going bankrupt this summer, according to court papers.

Under the proposal, which was announced during a court hearing Tuesday, the company would offer customers one of two options for being repaid. ...