Bitfinex Issues Bitcoin Hack Repayment Plan Update

Bitfinex has announced two ways for account holders to exchange their BFX tokens for a beneficial interest in Bitfinex parent firm, iFinex Inc.

AccessTimeIconSep 17, 2016 at 10:00 p.m. UTC
Updated Sep 14, 2021 at 1:59 p.m. UTC
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Bitfinex has taken new steps to reimburse accountholders who lost funds in an exchange breach earlier this year.

In a blog post this week, the troubled exchange announced two special purpose vehicles (SPVs) would be made available to accountholders for the purpose of exchanging digital assets for interest in iFinex Inc, Bitfinex's parent company. The exchange issued the assets, called BFX tokens, to accountholders after suffering a 120,000 BTC ($72m) hack on 2nd August.

One SPV, the exchange said, was created in partnership with crowdfunding platform BnkToTheFuture, while another was part of an effort organized by investor Alistair Milne. Both SPVs will allow accountholders to exchange BFX tokens for $1 beneficial interests in iFinex, it said.

The news is the latest that follows Bitfinex's decision to spread the loss it experienced in the hack across accountholders, giving them the novel financial instruments when it reopened trading on 10th August. The exchange issued the cryptographic tokens via the Omni blockchain, with the understanding that users could either redeem them for $1 apiece or exchange them for equity in iFinex.

Since then, the tokens have been trading in the secondary market under the ticker BFX, though Bitfinex remains the only exchange to list the asset.

While market responses to the issuance of these tokens were mixed, Bitfinex has provided accountholders with positive signs since distributing them, announcing on 1st September that it was redeeming more than 1% of the tokens for $1 despite the fact that they were trading for less on the market.

For more on the exchange and its history, read our latest profile here.

Cash register image via Shutterstock

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