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Bitfinex token offering gets 1 Billion USDT commitment, says shareholder

Maya Mandz | May. 10, 2019
Bitfinex token offering gets 1 Billion USDT commitment, says shareholder

May 10, 2019 | AtoZ Markets - According to a well-known Chinese trader Dong Zhao Bitfinex token offering project has already received 1 bln сommitments in USDT (Tether). One of the major shareholders of the Hong-Kong based crypto exchange reports that investors have already lined up to buy the Bitfinex exchange LEO token, that will reportedly be used on Bitfinex for internal services

Bitfinex token offering - Dong Zhao plan?

Dong Zhao, the founder of the investment firm DGroup, has already mentioned in social media about the crypto Bitfinex’s plan to issues its own proprietary exchange token. Zhao revealed certain details of upcoming Bitfinex token offering sale on Weibo, a Chinese microblogging website. He mentioned then, that most likely Hong-Kong based crypto exchange would not be doing a public sale for its token.

Zhao stated that he is the one who proposed the Bitfinex token plan as a way to resolve crypto exchanges issues related to the recent statements of New York attorneys.   He said in his Weibo account that the exchange should take the opportunity to issue tokens worth $ 850 million to bring in tether equal to the amount of Bitfinex funds that the government officials had seized.  

Longlasting Tether and Bitfinex litigations

According to the New York Attorney General's office (NYSAG) official statement, Bitfinex lost $850 million and used customer and corporate funds from the affiliated stablecoin operator Tether to cover their loses. The US attorneys 23-page statement details that Bitfex and Tether participated in “undisclosed, controversial operations to cover Bitfex’s losses by transferring money from reserve funds”. 

According to the lawsuit, Bitfinex through Crypto Capital mixed the funds stored on behalf of the client with its own capital. Bitfinex commented the following in a response to NYOAG's announcement, saying that $850 million have not been lost but, seized and safeguarded and they have been actively working to exercise their rights and remedies and get those funds released.

Bitfinex is taking actions

After the storms in the crypto community subsided and the crypto market began to restore, Bitfinex started to implement its recovery plan, aimed to regain its funds “seized” by authorities of several countries, including the US.

The Bitfinex token offering project is aimed to fill $850 million in financial gaps through an Initial Exchange Offering (IEO). In order to match the current trends of IEO, the exchange decided to offer its customers their own token LEO, to buy with USDT.

The crypto company first plans to conduct a closed sale of tokens, Zhao has previously spoken about this. If the exchange fails to attract $ 1 billion in Tether, Bitfinex will also hold public sales, allowing retail investors to participate.

Zhao stated, that Bitfinex has already received $ 1 billion soft and hard commitments in USDT for its Leo token offering.

Those who have left commitments have already transferred the USDT to purchase their token. Investors with soft commitments can withdraw their intent and money at any time. Zhao’s company also made commitments to buy LEO tokens. The firm does not reveal the details of the amount to be invested in Bitfinex token offering.

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