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Bitfinex Is Starting to Buy Back and ‘Burn’ Its LEO Exchange Token

Cryptocurrency exchange Bitfinex has announced a transparency initiative that will see it put on full view the buying back and “burning” of its LEO exchange token.


In an announcement Friday, the firm said as part of its token redemption process, the UNUS SED LEO Transparency Initiative will allow the public to see parent firm iFinex use its gross revenues to purchase circulating LEO tokens at market rates. These will then be destroyed, or burned, as the firm effectively pays back those who bought the exchange token in a $1 billion sale early last month.


Bitfinex appears to have launched the sale to cover an $850 million shortfall flagged by the New York attorney general in April. The AG’s office said Bitfinex had kept the lost millions secret and covered it with a loan from sister firm Tether Ltd, issuer of the tether stablecoin.


The redemption mechanism went live at 10.00 UTC Friday. The firm said tokens will be burned “every 3 hours until 100% of supply has been taken out of circulation.”


Read more at Coindesk...


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