Since the Bitfinex hack that resulted in a major loss of funds, the exchange company has been scrambling to fix the loss and damages.
On August 22, 2016, Bitfinex signed a formal letter of intent with BnkToTheFuture to provide solutions towards compensating customers with equity in Bitfinex.
BnkToTheFuture is a global online investment community of professional investors that invest in financial innovation and tech. Investments can be made in any currency they choose, including Bitcoin and Ether.
Part of Bitfinex’s plan to account for the loss while executing their recovery plan, they created the new token- BFX, which has a face value of $1 US and will be issued to customers in proportion to the losses they suffered due to the theft. Bitfinex will work with BnkToTheFuture to structure a deal allowing qualifying customers to exchange their BFX tokens for equity in iFinex Inc. through a Special Purpose Vehicle (SPV). More details about the SPV will be released in the future.
BitFinex CEO, Jean Louis van der Velde, stated:
“Our commitment was to get the exchange back online securely so customers know where they stand and to issue all users their BFX tokens. This is now complete and we have enabled trading of BFX tokens. We are committed to releasing updates and reports detailing the events of the hack and a financial update for customers and qualifying investors before we begin any equity conversion and have engaged third parties to complete this process.”
Simon Dixon, CEO and co-founder of BnkToTheFuture, said:
“BFX was an innovative approach towards making users whole and we are working with Bitfinex on several possibilities to accomplish their goals.”
Simon added: “The Bitcoin community has come very far and endured a lot over the past 8 years. This hack is the latest saga in Bitcoin’s history. It’s important to remember that Bitcoin itself is working perfectly and is unaffected. Now we are committed to finding market solutions in times of crisis. As a community we need to learn from this experience and develop our own solutions, we are exploring such options with Bitfinex. Bitfinex has shown a commitment to do all they can to help and support their customers as much as possible in a situation that has no perfect solution.”
Click here to read Bitfinex’s official announcement.