Bitfinex to Offer Company Equity to Reimburse Customer Losses
Bitfinex customers may soon have a way to convert the digital assets they were issued following the exchange's decision to socialize losses into equity in the company. Weeks after a debilitating hack, Bitfinex has signed a letter of intent with UK investment platform BnkToTheFuture that finds the two firms collaborating to enable the redemption of BFX tokens for equity in iFinex Inc, its British Virgin Islands-based parent company. Introduced when the exchange came back online on 11th August, BFX tokens are meant to make up for the 36% customer losses imposed after the incident. Issued to....
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Bitfinex has signed a letter of intent with BnkToTheFuture to allow qualified BFX token holders to exchange their BFX tokens for equity. Bitfinex, the troubled cryptocurrency exchange which recently faced a hacking incident has signed a letter of intent with BnkToTheFuture. This letter of intent marks the beginning of a cooperation between the cryptocurrency exchange and the well-known digital currency based investment platform. Following the latest development, both Bitfinex and BnkToTheFuture will work together to facilitate the conversion its customers’ losses into equity in the....
A recent blog post from Xapo called “What happens if Xapo gets hacked?” the company discusses the unfortunate Bitfinex heist that took place on August 2, 2016. Xapo says that if they were compromised the company would cover the losses from its own reserve. This is a glaring difference to the many exchanges that failed to reimburse their customers. Cold....
Following the theft of ~$70Mn worth of bitcoins on 2nd August, Bitfinex has calculated how much each customer would stand to lose: 36%. Arriving at Assets of Each Customer. Bitfinex has cancelled all withdrawals, open orders and open funding offers. All financed positions were settled based on a published settlement price. Post this, the asset position of each customer has been finalized. Accounting complete. Bitfinex has finalized accounting for the losses incurred. After consultation, it has arrived at the conclusion that losses must be generalized across all accounts and assets. Each....
Bitfinex has announced that many of its largest BFX token holders have agreed to exchange over 20 million BFX tokens for equity in the company, marking a step in its recovery following the August theft of approximately 119,756 bitcoins valued at more than $70 million. The equity consists of shares of Bitfinex’s owner, iFinex Inc. “This is a significant step towards the recovery and stabilization of our company,” said Philip Potter, the company’s chief strategy officer. “ He added: We are very pleased with this highly favorable trend of conversions. Since the theft more than two months ago,....
Bitfinex has announced that it has formally signed a letter of intent with the online investment platform BnkToTheFuture to provide solutions towards compensating customers with equity in Bitfinex. The BnkToTheFuture platform for financial innovation and technology investment opportunities will be providing a Special Purpose Vehicle (SPV) through which qualifying BFX token holders can contribute their tokens in exchange for an equity interest in compliance with their individual jurisdictions. Exchanging BFX tokens for equity in iFinex Inc. Following a hack on its system on August 2 and....