In a recent move, iFinex, the parent company of Bitfinex, plans to repurchase up to $150 million of its shares from shareholders who previously received them as a compensation method for the 2016 Bitfinex hack. This cyberattack saw the crypto exchange lose $71 million, primarily in Bitcoin.
Originally, due to a shortage of liquid assets after the attack, Bitfinex provided the affected users with two compensation options: recovery-right-tokens (RRT) or equity in the shape of iFinex shares. This equity solution was facilitated through a partnership with the investment platform BnkToTheFuture in 2016. Under this collaboration, users holding RRT BFX tokens had the opportunity to exchange them for iFinex shares. The $10 per share price tag then suggested iFinex’s market value stood at an impressive $1.7 billion, a significant leap from its $120 million self-assessed valuation the same year.
iFinex’s recent buyback proposal was outlined in a shareholder letter from September 22. The initiative mirrors the company’s commendable performance over the past years and allows shareholders to relinquish a potentially illiquid asset. Some directors of iFinex and its associate companies are eligible to join this buyback scheme. Notably, there’s no minimum share threshold for the buyback to move forward. iFinex has conveyed its readiness to acquire any number of shares until the set limit is attained.
Shareholders contemplating the offer have a window until October 24 to determine their stance on selling their shares back to iFinex.
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