Bitfinex Parent Company Considers $150M Share Repurchase

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.

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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.

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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.

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