iFinex Inc., the Hong Kong-based parent of Bitfinex, has announced a plan to buy back $150 million worth of shares from its shareholders, according to a Bloomberg report. The firm, which is valued at $1.7 billion, proposed to repurchase 15 million shares at $10 each, constituting about 9% of its outstanding capital. This decision comes on the heels of iFinex’s ‘positive performance’ in recent years.
The share buyback targets shareholders who acquired iFinex shares via BnkToTheFuture following a significant setback in 2016 when Bitfinex experienced a bitcoin hack leading to a $71 million loss. A New York couple connected to this hack recently pleaded guilty to a money laundering conspiracy.
iFinex, also linked with Holdings Ltd., is planning the buyback amidst regulatory scrutiny and shareholders’ information demands for Bitfinex Group’s regulatory applications. The company aims to gain control and alleviate concerns over illiquid investments through this offer. The buyback, which does not have a set threshold, hinges on a cash influx from a subsidiary.
Both iFinex and Tether Holdings were previously fined $42.5 million over issues related to the USDT stablecoin. Despite these challenges, Tether has been actively using its excess capital for investments in new projects such as Northern Data Group.
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