Bitfinex Plans to Raises $1 Billion Through IEO

Bitfinex shareholder and DFund founder Zhao Dong announced that Bitfinex, the US cryptocurrency exchange, may move to raise as much as $1 billion through a token sale as soon as next week. Zhao Dong said in WeChat yesterday that Bitfinex may start an IEO (Initial Exchange Offering) with a minimum buy-in of $1 million and each token being $1.

In the recent wave of Bitfinex and Tether crisis, Zhao Dong claimed in his personal Weibo that the exchange had a net profit of $400 million last year and spending $12 million. He pointed out that before the IEO, there were already $500 million USD of tokens that have been successfully raised. In other words, if you want to participate in IEO, you can check with him or DFund.

Zhao Dong said that the tokens issued by Bitfinex through IEO are a hybrid version of the similar currency (BNB), which can be used to pay for the transaction costs on the exchange. Bitfinex used to issue the token BFX in the past, but it was stolen by hackers in 2016 and needs to be redeemed by users through repurchase and cancellation.

Earlier, the New York State Attorney General accused Bitfinex of allegedly failing to disclose to the client after the money loss of Tether, involving $850 million. Bitfinex subsequently issued a statement on the company’s website, pointing out that the allegations were malicious and that the exchange and Tether had sufficient finances.