The Problem & Opportunity
Around $70million (face value) of BFX tokens have been created by Bitfinex to represent the socialised losses caused by the theft of 119,756 BTC from the company. Bitfinex have announced publicly that they will redeem these tokens at face value ($1 each) as soon as they can.
They have also announced that the BFX tokens *may* be convertible to equity upon request and if eligibility requirements are met. Given there are thousands of BFX token owners, only a small number will be able to convert their holdings into direct equity. It is likely that only accredited investors with a large quantities of BFX tokens will be allowed to convert.
Our intention is to create a way for the smaller & non-accredited BFX token holders to gain an indirect equity interest in Bitfinex – via the BFX Trust – should they believe in the company’s prospects. Should enough BFX tokenholders support the BFX Trust, it may become the largest single shareholder in Bitfinex. As BFX tokens are converted to equity, the less debt Bitfinex has and the more likely it will be profitable in the future.
A market has already been created to allow those wishing to buy/sell to trade without delay. At the time of writing, BFX tokens are trading at a significant discount to face value.
The Bitfinex Token Trust's structure
The BFX Trust deed is registered on the Island of St. Kitts & Nevis. The trustee is the Nevis IBC company ‘Crypto Trustees Limited’ with director Alistair Milne
What we can offer
We handle all information shared with us discretely, and you will not appear on any share register.Read more
Payments, such as dividends, are made directly to your Bitfinex account for your free use.Read more
You do not need to be an accredited investor and you may elect other beneficiaries instead of yourself.Read more
A 'special purpose crypto' trust?
We will use crypto-assets & blockchain technology to handle distributions to BFXTrust beneficiaries.
BFX Trust beneficiaries may choose how they want to receive any distributions out of the trust. E.g. Bitcoin or Tether USDRead more
All transactions out of the trust to beneficiaries will be recorded on a blockchain so may be verified by both partiesRead more
Neither the BFX Trust nor its beneficiaries will be obliged to operate a traditional banking accountRead more