About the BFX Trust
We propose creating the “Bitfinex Token Trust” to work on behalf of those who wish to buy or already own BFX tokens and would prefer to convert them into shares in Bitfinex. Collectively it may become one of the largest shareholders in Bitfinex.
The BFX Trust deed is registered on the Island of Nevis. The trustee is the Nevis IBC company ‘Crypto Trustees Limited’ with director Alistair Milne, Founder of the BFXTrust. Alistair is an experienced entrepreneur and investor in many Bitcoin & cryptocurrency startups.
The Bitfinex Token Trust has many benefits
One of them being the ability for non-accredited investors to hold a beneficial interest in the equity of Bitfinex.
Why we need the BFXTrust
Now that Bitfinex have released details of two options customers have to convert their BFX Tokens into equity (please see this post) we wanted to outline the differences between our approach and that of BnkToTheFuture.
The BFX Trust is intended for larger holders of BFX Tokens who would like more control over their investment. Our fee structure is different and a little lower (1% in and 2.5% of any payments out).
While the trust will pool everyone’s tokens together and convert them into equity, the beneficiaries will still have rights over their specific shareholding. This permits us to sell a fraction of the shareholding we hold for everyone should one or more beneficiaries choose to do so and an offer to buy is available.
If you don’t like an offer there is no risk of ‘drag along’ should other beneficiaries choose to accept an offer. We hope there will be an active secondary market.
Currently we are working to have documentation including trust deed and BFX transfer agreement available as soon as possible.
If you haven’t already, please express your interest, so we may contact you when we are ready to go!
The trust will avoid double taxation issues
Trustee represents all settlors’ interests
The Trust can pay dividends & sale proceeds in cryptocurrency
We offer close communication
We offer the ability for personal contact with the trustee and provide a Slack group for support and correspondence.
Frequently asked questions
What is the minimum I can convert via the BFX Trust?
We are recommending the BFX Trust vehicle for those who own over 100,000 BFX tokens that they wish to convert.
Is the BFXTrust open to anyone?
Anyone who is not a citizen of the USA or St. Kitts & Nevis may apply.
What are the fees?
The trustee will take 1% of incoming assets and 2.5% of anything paid out (e.g. dividends or proceeds from selling shares).
What is the structure?
The BFX Trust deed is registered on the Island of Nevis. The trustee is a Nevis IBC company called ‘Crypto Trustees Limited’. Its director is Alistair Milne.
Do you think I should convert?
The BFX Trust exists merely to facilitate a debt-for-equity conversion and cannot give investment advice.
Can I sell my shares when I want?
You will be able to instruct the trustee to sell on your behalf whenever you like. Naturally, there must be an offer to buy that you are happy for us to accept!
How will I get paid dividends or proceeds from the shares?
Currently, we intend to transfer these funds to your Bitfinex account via TetherUSD for you to trade/exchange or withdraw as you see fit.
What are the KYC requirements?
The same as per Bitfinex. It is easiest if you are a verified Bitfinex customer and agree to release your KYC documents with them to the trust. If you elect another beneficiary, we will require KYC documents for them as well.
How does BFXTrust differ form the BnkToTheFuture offer?
A trust structure is subtly different from the SPV being used by BTTF. It permits more control (e.g. you can choose to sell when you want & are able) and more confidentiality (you will not appear in a share register anywhere). You may elect a beneficiary other than yourself (e.g. wife or children). You do not need to be an accredited/certified investor to participate.