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iFinex Launches $150 Million Share Buyback Plan to Compensate Hack Victims: Report

Summary:
IFinex, the owner of popular cryptocurrency exchange network BitFinex and collaborator with Tether Holdings Ltd, reportedly unveiled a 0 million share buyback plan. This new announcement marks a significant milestone for the company’s growth, history, and efforts to make amends for its tainted history. The 0 Million Share Buyback Plan As per the reports, iFinex has offered a per share buyback price for 15 million shares, representing only 9% of the network’s outstanding capital. The reports indicate that this move will help regain control over the company’s dealings. After internal calculations based on multiple business metrics, the company was valued at .7 billion. The iFinex stock arrangement was made available to the network’s investors in 2016, when about

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iFinex, the owner of popular cryptocurrency exchange network BitFinex and collaborator with Tether Holdings Ltd, reportedly unveiled a $150 million share buyback plan.

This new announcement marks a significant milestone for the company’s growth, history, and efforts to make amends for its tainted history.

The $150 Million Share Buyback Plan

As per the reports, iFinex has offered a $10 per share buyback price for 15 million shares, representing only 9% of the network’s outstanding capital. The reports indicate that this move will help regain control over the company’s dealings.

After internal calculations based on multiple business metrics, the company was valued at $1.7 billion.

The iFinex stock arrangement was made available to the network’s investors in 2016, when about $71 million in Bitcoin, probably valued at $3.3 billion today, was stolen. Bitfinex adopted a unique remediation approach by providing the affected users with company shares equivalent to their losses via BnkToTheFuture.

As per the statement, the company plans to buy back the shares as a sign of strong positive performance in the past few years. The buyback relies on an influx of cash from at least one of its subsidiaries.

As per the reports, this buyback proposal has been extended to those shareholders who acquired the iFinex stock in the 2016 swap arrangement. As such, the invited shareholders can sell their stock holdings until October 24.

The CFO of Tether and Bitfinex, Giancarlo Devasini, who also holds a director role at iFinex and some of its subsidiaries, is permitted to participate in the buyback. Several other directors at iFinex and the subsidiaries have the chance to participate.

iFinex noted that by selling the shares, investors would avoid the increasing demand “to provide information to support the Bitfinex Group’s regulatory applications and to address scrutiny” while exiting the illiquid investment.

iFinex and Bitfinex set no threshold for the number of shares every holder must put up for sale to be accepted.

The Regulatory Conundrum

Regulators have been upping their efforts to control the cryptocurrency realm. Bitfinex and iFinex have not at all been spared from the regulatory attacks.

USDT, a popular stablecoin issued by Tether, has faced severe regulatory scrutiny.

Moreover, in 2021, Bitfinex and Tether faced a $42.5 million fine in the U.S. amid accusations of providing false info for reserves supporting the stablecoin. There were also claims that the exchange network illegally served U.S. clients.

Despite the challenges, Tether has emerged strong, with its growth this year, beating other stablecoins and taking more market share.

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