Bitfinex, the Hong-Kong based cryptocurrency exchange allegedly accused of misusing funds from the Tether stablecoin reserve has officially announced plans for an Initial Exchange Offering (IEO).
According to a whitepaper released by the Bitfinex on Wednesday, the target of the fundraising effort is $1 billion to be realized from the sale of USDT-pegged LEO tokens. The tokens will be issued by a new subsidiary of the exchange, known as Unus Sed Leo Limited, Bitfinex confirmed.
Additionally, the IEO which ends on May 11 will only likely involve a private sale, while the exchange figures out the best way to distribute the remaining of the 1 billion USDT tokens. Bitfinex wrote in the whitepaper,
“If fewer than 1 billion USDT tokens are sold by private token sale, the Issuer may thereafter sell remaining tokens at times, and in a manner, it deems appropriate in its sole discretion, consistent with applicable law.”
Aside from its IEO, Bitfinex also mentioned in the whitepaper that it aims to allow crypto projects to use their platform to raise funds, a pattern already embraced by other top exchanges such as Binance, Bittrex, and OKEx.
The first project on the Bitfinex IEO platform, although undisclosed at the moment will conduct its token sale in June, while successful fundraising will result in the token being listed on the two exchanges, Bitfinex wrote.
Finally, the exchange also announced plans for new offerings such as a regulated security token exchange, a derivatives market and an EOS-based offshoot dubbed EOSfinex.
Bitfinex’s IEO plans come at the time when the exchange is still facing a lawsuit with the New York Attorney General for using funds borrowed from its stablecoin subsidiary, Tether Ltd. to replace an allegedly missing $850 million.