iFinex Plans $150 Million Stock Buyback to Compensate Hack Victims
iFinex Inc., the parent company of Bitfinex and Tether, is taking steps to compensate victims of the 2016 hack. During that time, 120,000 Bitcoin was stolen, accounting for 36% of users’ balances.
iFinex Wants to Buy Back 15 Million Shares at $10/Share
iFinex Inc. aims to gain more control over its operations amid increasing scrutiny and regulatory challenges. As a result, the company plans to buy back shares from victims of the Bitfinex hack. The buyback has a budget of $150 million, with a proposed offer of $10 per share. This move values iFinex at $1.7 billion.
Shareholders have until October 24 to accept the offer.
Compensation for Hack Victims
In August 2023, the individuals responsible for the Bitfinex hack pleaded guilty to laundering $4.5 billion. At the time of the hack, the stolen BTC was worth around $71 million. However, its valuation has now risen to approximately $3.1 billion.
Although investors missed out on Bitcoin’s significant growth during bull runs in 2017 and 2021 by holding shares instead of BTC, they can still benefit from iFinex’s increased valuation and potentially cash out their holdings.
Tether’s Dominance as a Stablecoin
Tether’s USDT has become the most dominant stablecoin in the market, with a market dominance of 67.3%. This indicates its widespread use and acceptance in the crypto industry.
Clarification on Funding
Some community members raised concerns about Tether printing new tokens to fund the buyback. However, Bitfinex clarified that iFinex is a separate entity from Tether and will use its own undistributed profits to finance the buyback.
Hot Take: iFinex Takes Responsibility for Hack and Provides Compensation
iFinex’s decision to initiate a $150 million stock buyback demonstrates its commitment to compensating victims of the 2016 Bitfinex hack. By offering $10 per share, the company aims to give affected shareholders an opportunity to recover some of their losses. This move also allows iFinex to gain more control over its operations amid regulatory challenges. While investors may have missed out on Bitcoin’s price appreciation, they can still benefit from the increased valuation of iFinex. Overall, this initiative showcases iFinex’s efforts to rectify past issues and provide restitution to those affected.
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