Bitfinex to Compensate Customers With Equity, Cooperates with BnkToTheFuture
Bitfinex has announced that it has formally signed a letter of intent with the online investment platform BnkToTheFuture to provide solutions towards compensating customers with equity in Bitfinex.
The BnkToTheFuture platform for financial innovation and technology investment opportunities will be providing a Special Purpose Vehicle (SPV) through which qualifying BFX token holders can contribute their tokens in exchange for an equity interest in compliance with their individual jurisdictions.
Exchanging BFX tokens for equity in iFinex Inc.
Following a hack on its system on August 2 and losing almost 120,000 Bitcoins - a loss of 36% on funds held with the exchange, Bitfinex created a new token BFX with a face value of US$1 and issued these tokens to customers in proportion to the losses suffered by the theft.
Further details are to be released in future announcements on how the two entities will use the SPV to allow qualifying customers to exchange their BFX tokens for equity in iFinex Inc.
However, Simon Dixon, CEO of BnkToTheFuture, tells Cointelegraph, adding that it’s all he could say for now:
“BnkToTheFuture will be providing a Special Purpose Vehicle (SPV) through which qualifying token holders can contribute their tokens in exchange for an equity interest in compliance with their individual jurisdictions.”
More updates and reports to follow
BnkToTheFuture has hosted funding rounds resulting in over $70m worth of investments from qualified investors over the past year including investments in BitPay, BitPesa, Uphold, ShapeShift and many others. They now host the largest global community of qualified investors investing online in FinTech, Bitcoin, Blockchain and technology companies.
In a statement, Dixon said that they will be releasing updates and reports detailing the events of the hack and a financial update before the equity conversion. He believes that when clients’ funds are stolen from an exchange that is the size of BitFinex, there is a need - where possible - to focus on finding good market solutions which can potentially compensate investors faster than traditional proceedings.