Bitfinex exchange is all set for a $1 billion Initial Exchange Offering (IEO), according to a document released by its shareholder Dong Zhao on Twitter. Allegedly released by iFinex, the parent company of Bitfinex, the document confirms plans of raising $1 billion through its LEO tokens.
LEO tokens are intended to be at the heart of the iFinex ecosystem where token holders will get benefits such as discounts. The proceeds will purportedly be used for working capital and general business purposes. The initial listing will be on Bitfinex, Ethfinex and EOSfinex.
The IEO will not be accessible to residents of the US and Canada. According to the Block, the exchange plans to use it to cover $850 million of its funds that are frozen by authorities in Poland, US and Portugal. Last week, the New York Attorney General’s Office had accused Bitfinex of using Tether’s funds to cover the shortfall.
(Image Credit: Marco Verch)