22nd August 2016

Bitfinex signs letter of intent with BnkToTheFuture

Simon Dixon

The two companies will cooperate to facilitate the exchange of customer losses into equity

BnkToTheFuture, the online investment platform for financial innovation and technology investment opportunities, has signed a letter of intent with Bitfinex, the bitcoin exchange from which 119,756 bitcoins were recently stolen, to provide solutions to compensate customers with equity after Bitfinex announced a loss of 36% on funds held with the exchange. The loss is the direct result of the theft which has received global media attention.

To account for the loss while executing its recovery plan, Bitfinex created a new token – BFX, with a face value of US$1 and issued these tokens to customers in proportion to the losses suffered by the theft. Bitfinex and BnkToTheFuture will be structuring a deal to allow qualifying customers to exchange their BFX tokens for equity in iFinex Inc. via a Special Purpose Vehicle (SPV) with full details to be released in a future announcement.

BnkToTheFuture has hosted funding rounds resulting in over $70m worth of investments from qualified investors over the past year including investments in BitPesa, Uphold, ShapeShift and many others. They now host the largest global community of qualified investors investing online in FinTech, Bitcoin, Blockchain and Technology companies.

Simon Dixon, CEO and co-founder of BnkToTheFuture, believes that when clients’ funds are stolen from an exchange that is the size of BitFinex, we need to (where possible) focus on finding good market solutions that can potentially compensate investors faster than traditional proceedings. Simon believes that today we may be able to use new Blockchain assets and financial innovation to produce better and faster solutions for victims.

BnkToTheFuture and BitFinex have begun work that will allow users to redeem their BFX tokens through the BnkToTheFuture platform in order to facilitate compliant exchanges for equity by qualified investors. Furthermore, they will be discussing a suite of options with the goal of further minimising the loss for the hack victims.

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.”

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  • BnkToTheFuture Blog said:

    […] We recently signed a letter of intent with Bitfinex to use financial innovation in order to facilitate an equity token swap for victims of the recent theft. If you were a victim of the recent theft or just want to keep up-to-date with the news, more details can be found on our blog here.  […]

  • BnkToTheFuture Blog said:

    […] We recently signed a letter of intent with BitFinex to use financial innovation in order to facilitate an equity token swap for victims of the recent theft. We will be launching a preview pitch for BFX token holders shortly before we launch the actual conversion pitch. If you were one of the victims of the recent theft or are interested in further information more details can be found on our blog here. […]

  • JUNJI said:

    cool

  • essay-zone.com said:

    It will be interesting to see how well BnkToTheFuture goes in the years ahead as the Bitcoin and Blockchain market continues its upward growth.

  • Bitfinex Pays Out First Wave of Customer Refunds | Crypto Cabaret said:

    […] BFX token holders can acquire equity interest. Simon Dixon, CEO and co-founder of BnkToTheFuture, said “BFX was an innovative approach towards making users whole, and we are working with […]

  • Bitfinex Pays Out First Wave of Customer Refunds Coin Academy said:

    […] BFX token holders can acquire equity interest. 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 […]

  • Altcoin News - AltcoinsNews Bitfinex Pays Out First Wave of Customer Refunds - said:

    […] BFX token holders can acquire equity interest. 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 […]

  • Cryptostyle | Bitfinex Pays Out First Wave of Customer Refunds said:

    […] BFX token holders can acquire equity interest. 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 […]

  • Bitfinex Pays Out First Wave of Customer Refunds - Bitcoin News said:

    […] BFX token holders can acquire equity interest. 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 […]

  • James said:

    Anyone by issue of possession of bfx token should be ‘qualified’ to be issued ifinex shares if they choose. This “qualified” investor stuff is crap and needs to be ditched.

  • Bitfinex en discussion avec BnkToTheFuture – Bitcoin news said:

    […] Source : bnktothefuture.com […]

  • Bitfinex en discussion avec BnkToTheFuture – Bitcoin.fr said:

    […] Source : bnktothefuture.com […]

  • Bitfinex to Offer Equity to BFX Token Holders through BnkToTheFuture | Bit Age said:

    […] the troubled cryptocurrency exchange which recently faced a hacking incident has signed a letter of intent with BnkToTheFuture. This letter of intent marks the beginning of a cooperation between the […]