iFinex, the parent entity of Bitfinex and Tether Holdings, has announced a $150 million share buyback plan on Wednesday to offer relief to victims of a 2016 Bitcoin hack and to consolidate its control. The repurchase scheme, which is dependent on a substantial financial inflow from its subsidiary, is targeted at shareholders who acquired iFinex shares via BnkToTheFuture after a major Bitcoin hack.
In 2016, Bitfinex suffered a security breach that resulted in a loss of $71 million in Bitcoin, which is currently valued at around $3.3 billion. To compensate the victims, Bitfinex issued BFX tokens that were later swapped for iFinex shares. The proposed buyback plan offers to repurchase 15 million shares at $10 each, accounting for approximately 9% of total capital and valuing iFinex at an estimated $1.7 billion.
The initiative aims not only to protect the victims but also to alleviate regulatory pressures from the Bitfinex Group's requests and enhance liquidity in an investment that has been lacking it. This move comes despite iFinex facing regulatory fines over false information regarding Tether's USDT reserves and providing services to U.S. customers without proper approval.
However, demonstrating resilience amidst these challenges, iFinex has managed to secure a cryptocurrency exchange license in El Salvador. The offer to eligible shareholders remains open until October 24th, providing an opportunity for them to exit from non-liquid investments amidst past regulatory issues, including a $42.5 million fine over USDT stablecoin controversy and unauthorized services provided to U.S. clients.
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