The owner of crypto exchange Bitfinex, iFinex Inc.,
is considering a share buyback offer of $150 million. This initiative aims to
provide relief to the investors, who were originally compensated with BFX
tokens after Bitfinex suffered a substantial hack in 2016.
According to a report by Bloomberg, this proposal is
equivalent to 9% of iFinex’s outstanding capital and places the company at a
valuation of $1.7 billion. The offer targets shareholders who obtained iFinex’s
stock as part of a swap arrangement with the investment platform BnkToTheFuture
in 2016.
Additionally, the proposed share buyback is driven
by a desire to have more control over the company’s operations, especially with
the increasing regulatory scrutiny in the crypto industry. As the regulators
globally intensify their focus on the sector, this buyback could offer iFinex
greater autonomy and financial flexibility.
Following a hack in 2016 that led to a loss of
approximately $71 million worth of Bitcoin on Bitfinex at the time, the crypto exchange
issued BFX tokens. Subsequently, iFinex redeemed the tokens in exchange for its shares through BnkToTheFuture. These shares are the subject of
the buyback offer and give those impacted by the hack a chance to regain some
of their losses.
According to iFinex, the choice to proceed with the
share buyback is influenced by the company’s strong performance in recent
years. This strong performance has reportedly resulted in increased requests
for regulatory compliance and transparency from the company. By buying back shares, iFinex aims to ease these demands and provide investors with a
more liquid exit strategy.
Bitfinex’s Recovery Post-hack
The share buyback offer is open to the directors of
iFinex and its subsidiaries. Notably, iFinex Inc. and Tether Holdings Ltd., two
major players in the cryptocurrency industry, share common directors. However,
iFinex’s valuation for this buyback was determined internally, with no
assessment from any external third party. The company has given its shareholders
until October 24 to decide whether they wish to participate in this buyback
initiative.
In August, a resident of New York resident, Ilya
Lichtenstein, admitted to orchestrating the 2016 Bitfinex hack, which resulted
in the loss of approximately $4.5 billion worth of Bitcoins. Moreover,
Lichtenstein confessed to his involvement in laundering the stolen
cryptocurrency. These admissions occurred in a federal court in Washington,
D.C., as Lichtenstein and his wife, Heather Rhiannon Morgan, faced the legal
consequences of their actions.
During the plea hearing, it came to light that
Lichtenstein had converted some of the stolen Bitcoins into gold and hid it in
a secret location. Additionally, Lichtenstein is said to have traveled to
Ukraine and Kazakhstan to launder the stolen funds.
The owner of crypto exchange Bitfinex, iFinex Inc.,
is considering a share buyback offer of $150 million. This initiative aims to
provide relief to the investors, who were originally compensated with BFX
tokens after Bitfinex suffered a substantial hack in 2016.
According to a report by Bloomberg, this proposal is
equivalent to 9% of iFinex’s outstanding capital and places the company at a
valuation of $1.7 billion. The offer targets shareholders who obtained iFinex’s
stock as part of a swap arrangement with the investment platform BnkToTheFuture
in 2016.
Additionally, the proposed share buyback is driven
by a desire to have more control over the company’s operations, especially with
the increasing regulatory scrutiny in the crypto industry. As the regulators
globally intensify their focus on the sector, this buyback could offer iFinex
greater autonomy and financial flexibility.
Following a hack in 2016 that led to a loss of
approximately $71 million worth of Bitcoin on Bitfinex at the time, the crypto exchange
issued BFX tokens. Subsequently, iFinex redeemed the tokens in exchange for its shares through BnkToTheFuture. These shares are the subject of
the buyback offer and give those impacted by the hack a chance to regain some
of their losses.
According to iFinex, the choice to proceed with the
share buyback is influenced by the company’s strong performance in recent
years. This strong performance has reportedly resulted in increased requests
for regulatory compliance and transparency from the company. By buying back shares, iFinex aims to ease these demands and provide investors with a
more liquid exit strategy.
Bitfinex’s Recovery Post-hack
The share buyback offer is open to the directors of
iFinex and its subsidiaries. Notably, iFinex Inc. and Tether Holdings Ltd., two
major players in the cryptocurrency industry, share common directors. However,
iFinex’s valuation for this buyback was determined internally, with no
assessment from any external third party. The company has given its shareholders
until October 24 to decide whether they wish to participate in this buyback
initiative.
In August, a resident of New York resident, Ilya
Lichtenstein, admitted to orchestrating the 2016 Bitfinex hack, which resulted
in the loss of approximately $4.5 billion worth of Bitcoins. Moreover,
Lichtenstein confessed to his involvement in laundering the stolen
cryptocurrency. These admissions occurred in a federal court in Washington,
D.C., as Lichtenstein and his wife, Heather Rhiannon Morgan, faced the legal
consequences of their actions.
During the plea hearing, it came to light that
Lichtenstein had converted some of the stolen Bitcoins into gold and hid it in
a secret location. Additionally, Lichtenstein is said to have traveled to
Ukraine and Kazakhstan to launder the stolen funds.
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- Source: https://www.financemagnates.com//cryptocurrency/bitfinex-parent-company-ifinex-considers-150-million-share-buyback/
