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Bitfinex IEO Sealed $1 Billion in Commitments, Shareholder Reveals

By Anne W. | May 12, 2019
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Bitfinex IEO Sealed $1 Billion in Commitments, Shareholder Reveals

Zhao Dong, the Singapore DFund founder and also a Chinese OTC trader who owns Bitfinex shares, has recently announced that Bitfinex has successfully sealed $1 billion in soft and hard commitments for the exchange token offering.

iFinex, the company behind both Bitfinex and Tether, together with Zhao Dong, first planned to issue Bitfinex’s native coin in late April. Later, Bitfinex revealed the plan for investing up to $1 billion “LEO” coins, in a private sales ending on May 11.

Also according to Zhao in a WeChat post, there’s “a high possibility Bitfinex will not conduct a public sale” for its tokens, even though the exchange has received $1 billion in both hard and soft commitments for the LEO tokens.

In soft commitments, the investors still have not yet locked in their tokens for LEO and have the option to cancel from the deal. In that case, the leftover tokens will be sought as first come, first serve basis. Besides, the investors can also change their commitments from soft to hard one with a 10% deposit.

In another side, Bitfinex has accused an alleged $850 million loss of deposit funds from Tether, which was criticized for being back only 74% in USD reserves. Furthermore, both companies have raised the complaint which was heavily criticized the New York authorities for the legal allegation court of the parent company iFinex.

Last week, Zhao Dong has reportedly confirmed that the exchange is planning to launch an initial exchange offering (IEO) to raise $1 billion. A 3-page “marketing document”, released on May 4 by Zhao Dong via his tweet, provides details of how the sale might take place while noting that it is not intended to be legally binding.

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