iFinex proposes to buy back $150 million worth of shares from Bitfinex hack victims: Repor Cryptocurrency scrgruppen

Bitfinex’s parent company, iFinex, has proposed buying back $150 million worth of company stock from users who were offered compensation for the $71 million hack on cryptocurrency exchange Bitfinex in 2016. According to To Bloomberg.

IFinex revealed its share buyback plans in a letter to shareholders dated September 22. The digital asset company offered a price of $10 per share to shareholders in exchange for 15 million shares distributed in the wake of the 2016 Bitfinex hack.

Bitfinex lost approximately 36% of its users’ total balance, all in Bitcoin (BTC), and the cryptocurrency exchange did not have enough cash to compensate users for their losses at the time. Instead, Bitfinex offered Right to Redeem (RRT) tokens and shares in the form of iFinex shares to pool users and fill the gap in their balances caused by the hack. Users can choose between these two options.

iFinex shares were offered as part of a 2016 stock exchange deal in collaboration with investment platform BnkToTheFuture. The deal saw affected users receive RRT BFX tokens, which iFinex eventually redeemed in exchange for shares in its company via BnkToTheFuture. The $10 offer put iFinex’s valuation at $1.7 billion — well above its self-valuation of $120 million in 2016.

The company said the buyback program reflects its “positive performance” in recent years. Buying back investors’ shares means that investors can get rid of their somewhat illiquid investments.

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A small number of directors of iFinex and its affiliates will be eligible to participate in the buyback program. Under the agreement, no minimum number of shares is required for the repurchase to take place. The parent company claimed that it is ready to buy as many available shares as possible until the maximum amount is reached. Shareholders have until October 24 to decide whether or not they want to sell their shares to iFinex.

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