Bitfinex looks to raise $1bn with exchange token offering

"Token holders will experience immediate benefits across iFinex trading platforms, products, and services"

Bitfinex shareholder Zhao Dong has released a marketing document detailing the Hong Kong-based cryptocurrency exchange’s upcoming initial exchange offering (IEO).

In it,  iFinex — the company behind Bitfinex and Tether (USD) – discusses the availability of up to $1 billion worth of the exchange’s LEO tokens for purchase. “LEO tokens are intended to be the utility token at the heart of the iFinex ecosystem. Token holders will experience immediate benefits across iFinex trading platforms, products, and services,” the document, which isn’t a whitepaper, states.

In a New York minute

The move comes shortly after the New York State Attorney General targeted iFinex for misappropriation of funds tied to Tether (USD) to cover an $850 million loss.

“Our investigation has determined that the operators of the Bitfinex trading platform, who also control the Tether virtual currency, have engaged in a cover up to hide the apparent loss of $850 million of co-mingled client and corporate funds,” said Attorney General Lelita James. “New York state has led the way in requiring virtual currency businesses to operate according to the law. And we will continue to stand up for investors and seek justice on their behalf when misled or cheated by any of these companies.”

Bitfinex claimed that the New York State Attorney General’s filings were “written in bad faith and riddled with false assertions”.

“On the contrary, we have been informed that these crypto capital amounts are not lost but have been, in fact, seized and safeguarded,” it fired back. “We are and have been actively working to exercise our rights and remedies and get those funds released. Sadly, the New York Attorney General’s office seems to be intent on undermining those efforts to the detriment of our customers”.

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