Bitfinex Owner Seeks Regulatory Leverage with $150 Million Buyback

cryptonews.com:

In response to the recent regulatory challenges faced by Bitfinex, iFinex Inc., the Hong Kong-based parent company, is set to repurchase shares worth $150 million from its shareholders, constituting approximately 9% of the company's total outstanding capital. This move, reported by Bloomberg on October 10, aims to provide iFinex with greater control over its private dealings and streamline its ownership structure.

On September 22, iFinex extended an offer to its shareholders, proposing the buyback of 15 million shares at a rate of $10 per share. This initiative, which values the company at $1.7 billion, is contingent on an infusion of cash from at least one of iFinex's subsidiaries. 

iFinex's decision to engage in a share buyback is a strategic response to its positive performance in recent years and a testament to its resolve to navigate the challenges and opportunities presented by an ever-changing regulatory landscape. 

The share buyback initiative also addresses shareholders who acquired iFinex shares through BnkToTheFuture, offering them an avenue to exit what has been described as a relatively illiquid investment. This move follows a significant setback in 2016 when Bitfinex experienced a Bitcoin hack, resulting in a $71 million loss. In an effort to compensate users affected by the hack, Bitfinex issued BFX tokens, which were later exchangeable for shares in the parent company, iFinex.

Several directors at iFinex and its subsidiaries will participate in the share buyback, with a deadline set for October 24. This deadline marks a significant milestone in iFinex's pursuit of operational autonomy amidst evolving regulatory challenges.

Recently, a New York couple linked to the Bitfinex hack was arrested and subsequently