Ah, the lovely world of distressed claims and bankruptcy deals. It appears that a daring investor has shared a rather revealing letter from Cherokee Acquisition, a company that specializes in scooping up distressed claims like a scavenger hunting for treasures. The letter disclosed Cherokee’s eagerness to acquire claims tied to Linqto Texas, LLC (Case No. 25-90186) at a price that’s, shall we say, more than generous-if you’re on the buying side.
Cherokee’s Proposal
Let’s break it down: Cherokee’s bid is hardly subtle. They’ve set up two neat little price ranges. For claims over $100,000, they’re offering between 70% and 75% of the original value, and for claims under $100,000, they’ll drop it to a modest 65% to 70%. How thoughtful! The sellers, in return, get the joy of an immediate cash payout while Cherokee takes on the inconvenience of waiting for distributions. Isn’t that just a delightful arrangement?
Deaton’s Perspective
John Deaton, an attorney with a mind as sharp as a tack (and perhaps a sense of humor to match), chimed in with his take on these transactions. According to Deaton, firms like Cherokee are in the business of acquiring claims below their full value and waiting patiently to profit when distributions finally trickle in. For instance, if an investor initially put $100,000 into Ripple shares at $40 each, Cherokee’s offer would range between $60,000 and $75,000. A fair deal, if you’re into the whole “selling at a discount” thing.
@JohnEDeaton1 love to hear your thoughts on letter I received from Cherokee acq trying to buy @Ripple PE & this post about Linqto @digitalassetbuy @DigPerspectives
– XRPKingKong (@XRPKingKong) September 13, 2025
But hold your horses-Ripple shares are currently trading close to $100 on secondary markets, and Ripple’s last tender offer stood at a comfortable $175. So that same $100,000 investment could be worth more than $200,000 on paper. Ah, the sweet, sweet taste of unrealized gains. But alas, Deaton points out that these offers from Cherokee are usually based on the original investment, not the current market value. So, in theory, sellers might be leaving a rather substantial chunk of change on the table. Oops.
Why It Matters for Ripple Investors
Now, why should you care? Ripple’s private equity shares aren’t just sitting around waiting to be bought. Investors can only access them after Ripple goes public and the dreaded lockup period ends. That lockup period, as it turns out, is where firms like Cherokee swoop in with offers of liquidity. How generous of them, right?
But, and here’s the rub: while the offer gives a nice, quick exit, it comes at a substantial discount when compared to the potential upside if Ripple does indeed complete an IPO. Deaton, ever the voice of reason, advises investors to hold onto their shares unless they are facing a financial emergency. After all, if you’re not desperate for cash, why settle for a quick payout when the rewards of patience might be so much sweeter?
“The bottom line is that investors were NOT going to get Ripple shares UNTIL Ripple has an IPO AND the lockup period expires. Therefore, you were not going to get Ripple shares for sometime. So unless you’re facing an emergency and need the money, I don’t see why one would sell,” Deaton wisely concludes. Words of wisdom, indeed.
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2025-09-14 19:34