Exchange News

Bitfinex aims to raise $1 billion in a token sale without a white paper

Bitfinex, a U.S-based cryptocurrency exchange, is seeking to raise 1 billion U.S dollars through a token sale event. However, the token sale will be conducted by Bitfinex’s operator, iFinex. This comes amid heated allegations by the New York Attorney General that the cryptocurrency exchange lost 850 million U.S dollars belonging to its customers and didn’t inform its customers.

As per a document released by Zhao Dong, an OTC trader and a shareholder in the company, a marketing plan has already been formulated. Notably, the text does not exhibit qualities of a white paper since it lacks technical specifications of the token sale.

From the document, iFinex may be trying to steer away from the current controversies surrounding Bitfinex by introducing another firm, Unus Sed Leo Limited, to handle the token sale. Surprisingly, the token will be available for purchase using Tether (USDT), which is used by Tether Ltd, a company owned by iFinex and which is at the heart of the NYAG’s claims. Each token will have a 1:1 ratio with USDT.

According to Bitfinex:

The tokens will be sold in private offering without the means of general solicitation or general advertising. Any tokens that remain [un]issued may be sold in the manner and times determined by the Issuer in its sole discretion.

Owners of LEO tokens, as it will be trading on virtual currency exchanges, will benefit from low trading fees on Bitfinex, EOSFinex, and EthFinex. However, over time, the parent company, iFinex will buy back the LEO tokens “at then-prevailing market rates.” The purchase will be done until only 100 million LEO tokens are in circulation with the purchases being made every month.

Apart from the documents provided by Dong, no more confirmations were received by the time of writing.

Do you think iFinex is trying to recover the funds it lost in Bitfinex and those scooped from Tether’s reserves?

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coinmag

Philip is an experienced blogger keen on staying updated with trends and news surrounding the blockchain and Bitcoin space. With several years of freelance experience in various industries, Philip brings his knowledge and experience into the crypto space.

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