BFX, Bitfinex Debt Tokens were issued to Bitfinex users that saw a loss in their funds after an attack that cost the Hong Kong exchange 119,756 bitcoins, valued at more than $70 million. These tokens were distributed on a 1 to 1 scale according to the usd value lost. These tokens represent a debt owed by Bitfinex to its holders, meaning that BFX holders are entitled to receive equity in the company or to be paid back for their Bitcoin losses. Although this token represents no legal obligation, Bitfinex has already managed to reimburse the first and second wave of customers, exchanging 2.4% of the supply for Bitcoin at $1 each token, which is above the market price for the token at the time.
“On September 2 and 30, we announced the unilateral redemption of 1.1812% and 1.3152% of outstanding BFX tokens, respectively. Redemptions were applied pro rata to all settled wallet balances.”
Now, Bitfinex has exchanged 20 million BFX tokens, roughly 27% of the total supply, for equity in the company. This means that the outstanding debt that Bitfinex has with their customers is roughly $50m dollars, which is a big step in the right direction for the popular Bitcoin exchange that has managed to stay afloat despite the disastrous attack which also took its toll on the Bitcoin price itself..
“Since the theft two months ago, our primary objective has been to make our customers whole,” said Philip Potter, Chief Strategy Officer at Bitfinex. “This is a significant step towards the recovery and stabilization of our company. We are very pleased with the results of this first round of conversions.”
Earlier this week, Bitfinex also issued the RRT, the Recovery Right token, created to benefit the victims of the attack with any excess amounts that may be recovered.
“To further reward BFX token holders converting to equity, we have created a new token, the Recovery Right Token (the RRT) to compensate victims of the security breach and, thereafter, to offer a priority to early BFX token conversions.
If there is any recovery of the property stolen from Bitfinex on August 2nd, the first priority will be to use any recovery amounts to repay the then-outstanding (unconverted) BFX tokens. If there are any excess recovered amounts after all outstanding BFX tokens have been redeemed at full face value, those recovered property will be distributed to RRT holders.”
It seems that Bitfinex is doing everything possible to keep their clients satisfied and to return all the lost funds, after one of the biggest hacks in Bitcoin history. The question is if that will be enough for Bitfinex to recover its reputation.