{"id":171974,"date":"2023-10-11T10:02:45","date_gmt":"2023-10-11T04:32:45","guid":{"rendered":"https:\/\/dripp.zone\/news\/bitfinex-sets-new-precedence-with-150m-share-buyback-offer-crypto-news\/"},"modified":"2023-10-11T10:02:47","modified_gmt":"2023-10-11T04:32:47","slug":"bitfinex-sets-new-precedence-with-150m-share-buyback-offer-crypto-news","status":"publish","type":"post","link":"https:\/\/dripp.zone\/news\/bitfinex-sets-new-precedence-with-150m-share-buyback-offer-crypto-news\/","title":{"rendered":"Bitfinex Sets New Precedence With $150M Share Buyback Offer – Crypto News"},"content":{"rendered":"

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As the regulatory scrutiny into the crypto space shoots up, iFinex \u2013 the owner of Bitfinex exchange \u2013 announced a $150 million share buyback with the intent of protecting the victims of the 2016 hack, and seeking greater control over the company\u2019s dealings.<\/p>\n

Bitfinex Share Buyback Plans<\/h3>\n

Hong Kong-based iFinex Inc., which shares directors with major stablecoin issuer Tether Holdings Ltd., has extended an offer to shareholders on September 22 to buy 15 million shares at $10 per share. This offer accounts for approximately 9% of iFinex\u2019s total outstanding capital and assesses the firm\u2019s value at $1.7 billion. The deal is contingent on iFinex securing a financial injection from one of its subsidiaries, as noted in the proposal.<\/p>\n

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The offer is open to shareholders who originally acquired iFinex stock through a 2016 swap arrangement with the investment platform BnkToTheFuture. In that year, Bitfinex experienced a hack resulting in the theft of around $71 million in Bitcoin. The current value of the same stands at approximately $3.3 billion. To compensate affected users, Bitfinex provided BFX tokens, which iFinex later exchanged for shares in its company through BnkToTheFuture.<\/p>\n

A number of directors at iFinex and its subsidiaries will participate in the buyback. In a statement<\/a> to Bloomberg, iFinex also stated that the decision of buyback comes on the backdrop of \u201cpositive performance\u201d by the company over the past few years.<\/p>\n

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iFinex further stated that by divesting their shares, investors can reduce the growing pressures on them to furnish information to bolster the Bitfinex Group\u2019s regulatory requests and deal with heightened scrutiny. It also allows them to exit from an investment that lacks liquidity.<\/p>\n

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Bitfinex \u2013 Sailing Through Regulatory Challenges<\/h3>\n

Both Tether and Bitfinex have faced regulatory challenges in the past. In 2021, they were collectively fined $42.5 million by U.S. regulators. This fine was to resolve accusations that Tether had provided false information regarding the reserves supporting its USDT stablecoin. Additionally, it was alleged that Bitfinex had served U.S. customers without obtaining the necessary approvals.<\/p>\n

However, despite all the regulatory kickbacks, Bitfinex has shown strong resilience<\/a> during the market volatility. At the same time, Bitfinex continues to tap opportunities in the overseas market. Earlier this year, Bitfinex was the first to secure a crypto exchange license<\/a> in El Salvador.<\/p>\n

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