In yet another strange twist to the Bitfinex saga last week, Bitcoin investor Dong Zhao leaked an official Bitfinex document laying out hard proof of their upcoming token sale and LEO token.
Bitfinex Official document about the LEO token pic.twitter.com/YR5FdS4iUY
— Dong Zhao (@zhaodong1982) May 4, 2019
Dovey Wan kicked off with a rumour last week on Twitter.
BREAKING and WTF 🤯🤯🤯🤯
Bitfinex is planning on a exchange token sale + IEO… plan to raise $1B in $USDT….
This is really a WTF situation 🤦🏻♀️🤦🏻♀️
— Dovey Wan 🗝 🦖 (@DoveyWan) April 29, 2019
Bitfinex, based in the British Virgin Islands is currently being investigated by regulators and having problems due to its association with Tether. As reported in Blockchain News last week, NY Attorney General Letitia James, stated that iFinex, the holding company of both Tether and Bitfinex, may be participating in “ongoing activities that may have defrauded” cryptocurrency investors. A 23-page document signed by Brian Whitehurst, the Assistant Attorney General, rolled out more incriminating accusations.
According to investigators, Bitfinex currently is missing about $850 million thanks to their relationship with a dodgy Panama-based payment processing company called Crypto Capital who allegedly have funds frozen by governmental regulators in Poland, Portugal, and the United States.
It appears that Bitfinex is looking to hedge against not recovering the funds from Crypto Capital by doing a massive token sale and joining the Huobi and Binance tokenized exchange club.
The exchange has not made any official statement so far but apparently, according to Coindesk, On May 4, Renrenbit, a crypto-lending application founded by Bitfinex shareholder Dong Zhao, started taking in pre-orders from users who want to participate in the public phase of the exchange’s upcoming $1 billion token sale.
Also published on Medium.