Bitfinex Parent Company Considers $150M Share Repurchase

Zinger Key Points
  • In 2016, Bitfinex compensated users with BFX tokens after a $71 million Bitcoin theft incident.
  • Tether and Bitfinex faced a $42.5 million fine in 2021 over USDT stablecoin reserves and unauthorized operations.

Bitfinex's parent company, iFinex Inc., is considering a $150 million share repurchase to increase its influence over the crypto exchange's operations amidst rising regulatory attention.

The Hong Kong-based iFinex, which has ties to the prominent stablecoin issuer Tether Holdings Ltd. USDT/USD, proposed a $10 per share offer for 15 million shares, valuing the company at $1.7 billion, contingent on cash inflow from its subsidiaries, Bloomberg reported.

Amidst these unfolding developments in the crypto realm, industry enthusiasts and experts are gearing up for Benzinga's Future of Digital Assets conference on Nov. 14. The event promises to shed light on the evolving landscape of digital currencies, offering insights from leading voices and fostering discussions on the challenges and opportunities that lie ahead.

This move follows the 2016 incident where Bitfinex compensated users with BFX tokens after a $71 million Bitcoin theft.

These tokens were later swapped for iFinex shares via BnkToTheFuture.

The repurchase reflects iFinex's "positive performance" over recent years, aiming to ease shareholders' regulatory burdens and offer an exit from a less liquid investment.

Also Read: Caroline Ellison Drops Bombshell: Bankman-Fried Wanted To Be President

Tether and Bitfinex have faced regulatory challenges, including a $42.5 million fine in 2021 over allegations concerning Tether's USDT stablecoin reserves and Bitfinex's unauthorized U.S. operations.

With $83.5 billion USDT in circulation, Tether remains the most traded crypto token.

Stablecoins, designed to mirror assets like the dollar, are pivotal in the crypto trading world, offering a buffer against market volatility.

The crypto sector's regulatory landscape is evolving, with countries like the U.S., U.K., and EU drafting stablecoin regulations. 

iFinex's buyback proposal allows participation from several of its directors.

Notably, Giancarlo Devasini, CFO for both Tether and Bitfinex, can partake in the deal.

The buyback lacks a minimum share requirement, with iFinex open to purchasing any available shares up to the cap. Shareholders have until Oct. 24 to decide on selling their stakes.

Read Next: Is Binance's $1B Crypto Recovery Fund A Gigantic Fizzle?

Meet and engage with transformative Digital Asset and Crypto business leaders and investors at Benzinga's exclusive event: Future of Digital Assets. Tickets are flying: Get yours!

Photo: Shutterstock

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In: CryptocurrencyNewsMarketsBitfinexCoinGeckocrypto exchangeCrypto industrycrypto regulationsDigital AssetsGiancarlo DevasiniiFinex Inc.Northern Data GroupUS Treasury Bills
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!