⏏Parent Bitfinex announces $150 million share buyback for victims of hacking⏏
As regulatory scrutiny of the crypto space intensifies, iFinex-the owner of the Bitfinex exchange-announced a $150 million share buyback with the aim of protecting the victims of the 2016 hack, and seeking greater control over the company's Affairs.
Bitfinex Shares Repurchase Plan
iFinex Inc.based in Hong Kong., which shares directors with major stablecoin issuer Tether Holdings Ltd., had extended an offer to shareholders on September 22 to buy 15 million shares at $10 per share. The offering accounts for about 9% of iFinex's total outstanding capital and values the company's value at $1.7 billion. The deal relies on iFinex getting a financial injection from one of its subsidiaries, as noted in the proposal.
The offer is open to shareholders who originally acquired iFinex shares through a 2016 swap arrangement with investment platform BnkToTheFuture. In that year, Bitfinex suffered a hack that resulted in the theft of approximately $71 million worth of Bitcoins. The current value of the same reaches about $3.3 billion. To compensate affected users, Bitfinex provides BFX tokens, which iFinex then exchanges for shares in its company through BnkToTheFuture.
A number of directors at iFinex and its subsidiaries will participate in the buyback. In a statement to Bloomberg, iFinex also stated that the buyback decision was made against the background of the company's "positive performance" over the past few years.
iFinex further stated that by divesting their shares, investors can ease the increasing pressure on them to provide information to support the Bitfinex Group's regulatory demands and handle close scrutiny. It also allows them to exit investments that lack liquidity.
Bitfinex-Sailing Through Regulatory Challenges
Both Tether and Bitfinex have faced regulatory challenges in the past. In 2021, they were collectively fined $42.5 million by US regulators.
