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 iFinex, the parent company of the crypto exchange Bitfinex, has reportedly announced plans to repurchase $150 million worth of its shares, which were initially issued as compensation to users affected by Bitfinex’s 2016 hack.
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<a style="color: #0000ff;" href="https://www.bloomberg.com/news/articles/2023-10-10/bitfinex-owner-offers-150-million-share-buyback-to-bitcoin-btc-hack-victims#xj4y7vzkg" rel="noopener noreferrer nofollow">According to Bloomberg</a>, iFinex proposed to buy back 15 million company shares at a rate of $10 per share in a letter to its shareholders in September 2023. The proposed buyback represents slightly more than half of the total value of shares outstanding, which amounts to $272 million.
The move to repurchase shares underscores the improved financial strength of both iFinex and Bitfinex following the <a style="color: #0000ff;" href="https://defi-planet.com/2022/02/hackers-move-3-55b-worth-of-bitcoin-from-2016-bitfinex-hack/" rel="noopener noreferrer nofollow">2016 security breach</a>. The hack not only impacted customer trust but also led to years of legal disputes for the crypto exchange.
These shares were originally distributed to Bitfinex users as a way to reimburse them for their losses resulting from the $71 million hack that occurred in 2016. Bitfinex lacked the necessary cash reserves to fully compensate users who had lost bitcoin in the hack, so it provided recovery right tokens (RRT) and iFinex shares to make amends to the affected users.
The share issuance was facilitated through a stock swap collaboration between iFinex and the investment platform BnkToTheFuture. Initially, victims received BFX tokens, which were later redeemable for iFinex stock.
A select group of iFinex and its affiliates’ directors will be eligible to participate in the share repurchase program. The agreement does not specify a minimum number of shares required for the buyback to proceed.
iFinex has stated its willingness to repurchase as many shares as shareholders make available until their predetermined limit is reached. T noted that shareholders have until October 24, 2023, to decide whether they wish to sell their shares back.
Notably, in 2022,<a style="color: #0000ff;" href="https://defi-planet.com/2022/02/justice-department-recovers-3-6-billion-of-bitcoin-stolen-in-bitfinex-crypto-hack/" rel="noopener noreferrer nofollow"> the U.S. Department of Justice seized at least $3.6 billion worth of Bitcoin </a>connected to the cryptocurrencies stolen in the 2016 hack. Furthermore, the Justice Department arrested two suspects in connection with this seizure. The suspects were allegedly attempting to launder the funds when they were arrested, and were subsequently charged in connection with the case.
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The post <a rel="noopener noreferrer nofollow" href="https://defi-planet.com/2023/10/ifinex-to-repurchase-150-million-in-shares-from-bitfinexs-2016-hack-victims/">iFinex to Repurchase $150 Million in Shares from Bitfinex’s 2016 Hack Victims</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://defi-planet.com">DeFi Planet</a>.

iFinex to Repurchase $150 Million in Shares from Bitfinex’s 2016 Hack Victims

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