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Bitfinex Finally Confirms Its $1 Billion IEO, Releases White Paper

After weeks of speculations, Bitfinex has finally released the white paper for its controversial Initial Exchange Offering (IEO) from which the firm is hoping to raise $1 billion in funding in USDT for its native exchange token LEO. Apart from the announcement of its IEO, the exchange also announced a dedicated platform where it will provide an opportunity to others who are willing to conduct similar private sales or IEO. However, the exchange did not provide much information on the platform.

It all started with the exchange trying to cover its $850 million loss using the Tether reserves but denied any such doing. However, the New York regulators are suing both Tether and Bitfinex for falsifying their income records. The New York attorney filed a case against Bitfinex after they traced back the lost funds.

There were several reports of Bitfinex’s private sale through IEO, much before any official announcement from the firm, and these speculations gained quite a momentum when it was discovered that Bitfinex would be raising funds in USDT. Speculation mill suggested that the IEO is just a move to cover up the used reserve of around $700 million USDT.

The IEO White Paper

Bitfinex white paper for their Initial Exchange Offering will continue till 10th of May instead of 11th May, which was speculated earlier. The white paper also confirms that even if the private sale is not able to reach the target of $1 billion, there won’t be any extension of the private sale after the 10th of May. The whitepaper reads,

“IF FEWER THAN 1 BILLION USDT TOKENS ARE SOLD BY PRIVATE TOKEN SALE, THE ISSUER MAY THEREAFTER SELL REMAINING TOKENS AT TIMES AND IN A MANNER IT DEEMS APPROPRIATE IN ITS SOLE DISCRETION, CONSISTENT WITH APPLICABLE LAW… PROJECTS THAT SUCCESSFULLY RAISE CAPITAL ON THIS PLATFORM ARE SUBSEQUENTLY LISTED ON THE TWO EXCHANGES, AS PERMITTED BY APPLICABLE LAW, AND TOKEN SALE PARTICIPANTS RECEIVE THEIR SUBSCRIBED TOKENS IN THEIR EXCHANGE WALLETS. THE FIRST TOKEN SALE IS SCHEDULED FOR JUNE 2019.”

Apart from the official white paper and plans of launching an IEO platform, the firm also plans to start a Security Token Exchange which won’t be functional in the USA due to its tussle with the Securities and Exchange Commission (SEC) and Commodities and Futures Trading Commission (CFTC).