IEO Claims to Have Raised a Whopping $1B
Bitfinex and Tether have been under a lot of scrutiny following the New York Attorney General's (NYAG) fraud investigation. The exchange has been rumored to have cash flow problems since earlier this year when $850 M has been frozen by authorities.
Bitfinex was looking to conduct an IEO (initial exchange offering) in accordance to a document released May 4th. The document outlined the terms of the IEO and explained a bit about the upcoming LEO token and its benefits. It was claimed that the cap for the project was a huge $1 B dollar cap to be raised only in the form of Tether (USDT). Critics and skeptics have claimed that the purpose of this IEO is to cover up losses and frozen funds.
In an announcement earlier today by Bitfinex CTO, Paolo Ardiono announced that the LEO token fundraising has been complete. $1 B was raised for the Bitfinex LEO token in only 10 days. As per the tweet:
@bitfinex is able to raise
1b USDt in 10 days, in a private sale. Private companies, giants in our
industry and outside, made investments for > 100m each. A legion of inside
and outside users made investments for > 1m each."
Just as with Telegram's TON ICO, it seems that the token sale was private only, leaving nothing for the public. One can only wonder how the NYAG will react to the news of the IEO.
Written by Jonathan Ganor
Writer & cryptocurrency aficionado