Bitfinex was dragged into a controversy with Tether, the largest stablecoin, where the exchange was allegedly covering a loss of $850 million with Tether funds. The situation escalated in the community and Tether ended up dropping down to $0.96. The stablecoin quickly recovered its valuation but Bitfinex lost its standing in the community.

Recently, the exchange announced that from 14th July, Bitfinex was going to allocate a portion of the funds from their margin funding activities towards UNUS SED LEO token redemptions. The medium post stated that a minimum of 27 percent of all the revenues generated by Bitfinex will be used to purchase LEO from the open market.

Source: Twitter

The exchange also claimed that Bitfinex was already buying LEO tokens from the open market. The post stated,

“On a continuous basis, Bitfinex buys back UNUS SED LEO from the open market equal to a minimum of 27% of the revenues of iFinex, including trading fees, funding fees and revenues associated with Tokinex. This occurs in perpetuity, until no tokens remain in circulation. Over the past two months we’ve added numerous fee benefits to UNUS SED LEO token holders, including an array of taker fee reductions.”

The current announcement has been released days after the New York Attorney General filed documents against Bitfinex and Tether. The NYAG alleged that iFinex, the parent company of Bitfinex and Tether, continued services in New York traders, four years after the company said they had restricted services. The NYAG provided evidence and multiple ties which indicated that the exchange did not stop their services in New York even after 2015.

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Biraajmaan Tamuly

Biraajmaan is an engineering graduate who is exploring the ever-changing crypto verse while traversing his passion for cryptocurrency news writing. He is a Chelsea fan and a part-time poet and does not hold any value in cryptocurrencies yet.

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