Zhao Dong, shareholder of the Bitfinex crypto exchange, has published new promotional material that details the next initial exchange offer (IEO) of the exchange for a value of up to USD 1,000 million. The information was shared in a tweet from Dong on May 4.
The document, purportedly published by iFinex - the company behind Bitfinex and Tether (USDT) - announces the availability of up to USD 1 billion in exchange tokens, nicknamed LEO, for purchase. The token described in the marketing document - which specifies that it is not a white paper - is intended to be the utility token at the heart of the company's ecosystem.
The marketing document promises that LEO tokens holders will enjoy reduced crypto to crypto trading rates in Bitfinex and in the company's decentralized exchange, EOSfinex. In addition, the token will also reportedly grant a reduction in the loan commission, a discount on the withdrawal and deposit commission and a reduction in the commission on derivatives.
The document promises that users will perceive similar advantages also in the future commercial platforms, products and services of iFinex.
The material also specifies that LEO sales will not be available to citizens of the United States and Canada, among other jurisdictions.
The sale of tokens is being carried out to cover USD 850 million of the exchange's funds, which are currently frozen in multiple accounts under the control of a payment processing company, the crypto-news media The Block reports today. The publication cites an extract from the white paper of the new token.
Last week, the New York Attorney General's Office accused Bitfinex of using funds from its affiliate Tether to cover the USD 850 million lost.
Rumors about Bitfinex that sought to raise funds through an IEO began in late April, while Zhao confirmed the rumors earlier this week, with less detail.
Also last week, the Cointelegraph reported that Tether's attorneys confirmed that the firm only has enough cash to back three-quarters of the growing supply of its stable currency, USDT.