iFinex, owner of popular cryptocurrency exchange network BitFinex and collaborator with Tether Holdings Ltd, has reportedly unveiled a $150 million stock buyback plan.
This new announcement represents an important milestone for the company’s growth, history and efforts to correct its tainted history.
$150 million stock buyback plan
according to Reports, iFinex offered a share buyback price of $10 for 15 million shares, representing only 9% of the network’s outstanding capital. Reports indicate that this step will help regain control over the company’s dealings.
After internal calculations based on multiple business metrics, the company was valued at $1.7 billion.
The iFinex stock ranking was made available to network investors in 2016, when about $71 million worth of Bitcoin was stolen, which today would probably be worth $3.3 billion. Bitfinex adopted a unique remedial approach by providing affected users with company shares equivalent to their losses via BnkToTheFuture.
According to the statement, the company plans to buy back shares as evidence of the strong positive performance in the past few years. The buyback is dependent on cash flow from at least one of its subsidiaries.
According to reports, this buyback proposal has been extended to shareholders who acquired iFinex shares in the 2016 swap arrangement. As such, the invited shareholders can sell their share holdings until October 24.
Tether and Bitfinex’s CFO, Giancarlo Devasini, who also serves as a director at iFinex and some of its subsidiaries, is permitted to participate in the buyback. Many other iFinex managers and affiliates have the opportunity to participate.
iFinex noted that by selling shares, investors will avoid the increased demand to “provide information to support Bitfinex Group’s regulatory applications and audit processing” while exiting an illiquid investment.
iFinex and Bitfinex have not set any limit on the number of shares each holder must put up for sale in order to be accepted.
Regulators have intensified their efforts to control the world of cryptocurrencies. Bitfinex and iFinex were not at all saved from regulatory attacks.
USDT, a popular stablecoin issued by Tether, has faced intense regulatory scrutiny.
Furthermore, in 2021, Bitfinex and Tether faced a $42.5 million fine in the US amid accusations of providing false information about the reserves backing the stablecoin. There have also been allegations that the exchange network illegally serves US clients.
Despite the challenges, Tether has emerged strong, with its growth this year, outperforming other stablecoins and capturing a larger market share.
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