Bankrupt Fintech to Sell Hard-to-Get Stakes in Private Firms (1)

Collapsed fintech startup Linqto Inc. won court permission to try to sell valuable stakes in hard-to-acquire, private companies so it can fund its bankruptcy case.

Linqto did not list which securities it would try to liquidate, but said they would come from a portfolio worth more than $500 million. It had acquired the stakes for itself and customers before the online investment platform shut down and filed bankruptcy while being investigated by federal regulators.

The firm’s demise highlights the dangers to retail investors of buying stakes in illiquid and hard-to-value assets. It comes just weeks after President Trump signed ...