Bitfinex May Try to Raise $1B With Own Token Sale

According to the founding partner of Primitive Ventures Foundation, "folks are selling the allocation of its IEO in a few channels"
30 April 2019   1061

Bitfinex Cryptocurrency Exchange, presumably, intends to issue its own token and raise $ 1 billion in USDT by selling it. This was announced by the founding partner of Primitive Ventures Foundation Dovey Wan.

Earlier, Bitfinex was involved in a scandal because of the prosecution of the prosecutor's office in New York in an attempt to conceal the fact of losing $ 850 million using the reserves of its affiliate Tether.

There is no other information on this issue at the moment, however, the crypto-community on Twitter is already showing considerable interest in the alleged and ambiguous step of Bitfinex.

Also on Monday Bitfinex’ed provided a copy of the document, allegedly an agreement between Bitfinex and Tether, to provide the first loan of $ 900 million dated March 19, 2019. Bitfinex’ed pays attention to the issue of USDT from March 19 to April 25, when stablecoin's capitalization increased by $ 853 million, which, according to some, may be evidence of unsecured emissions.

Zirui published a message allegedly written by Bitfinex investor Zhao Dong, who previously disclosed insider information. 

 

Court to Ban TON Tokens Release

U.S. District Judge P. Kevin Castel, of the Southern District of New York issued a temporary restiction, therefore supporing the SEC
25 March 2020   932

The American court issued an order to the developer of the Telegram messenger, according to which he should refrain from the distribution of tokens of the TON blockchain project planned for next month.

According to CoinDesk, on March 24, the District Judge of the Southern District of New York, Kevin Castel, issued a temporary injunction, recognizing the SEC's arguments regarding the sale of unregistered securities by the company as reasonable.

The Court finds that the SEC has shown a substantial likelihood of success in proving that the contracts and understandings at issue, including the sale of 2.9 billion Grams to 175 purchasers in exchange for $1.7 billion, are part of a larger scheme to distribute those Grams into a secondary public market, which would be supported by Telegram’s ongoing efforts.

 

Kevin Castel

U.S. District Judge

According to the judge, this feature does not allow considering the Telegram offer as subject to exceptional conditions. He also noted that Telegram structured its project in such a way as to attract “the maximum number of primary buyers” against the background of the expectation of maximum profit at the time of launch.

Considering the economic realities under the Howey test, the Court finds that, in the context of that scheme, the resale of Grams into the secondary public market would be an integral part of the sale of securities without a required registration statement. 

 

Kevin Castel

U.S. District Judge

Conducting an analysis from the standpoint of the Howey test, the judge stated that buyers expected to profit from participating in the campaign. Moreover, although Telegram may argue that it will not become a guiding force in the further development of TON, “in fact,” it will be precisely this.

The judge agreed to distinguish between non-existent Gram tokens and securities purchased by TON investors, but refused to support Telegram's argument that Gram would be a commodity.

The Court rejects Telegram’s characterization of the purported security in this case. While helpful as a shorthand reference, the security in this case is not simply the Gram, which is little more than [an] alphanumeric cryptographic sequence.

 

Kevin Castel

U.S. District Judge

This is not the final decision, but it can serve as a powerful indicator of what position the court will adhere to further.