Crypto Exchange, Bitfinex, Announces Percentage Of Margin Fees For LEO Buyback
The largest stablecoin USDT (Tether) and cryptocurrency exchange platform, Bitfinex have been in somewhat of a controversy over the alleged cover up of the loss of about $850 million worth of Tether funds.
Crypto Community Trust Drop
This caused a decline in the trust of the stablecoin by the crypto community, resulting in a drop of the value USDT to $0.96. However, Tether has since recovered but Bitfinex is still not out of the woods yet.
Bitfinex recently announced that from the 14th of July, 2019, the exchange will be allocating a part of their margin funding activities to UNUS SED LEO token redemptions.
27% of Margin Fees For LEO Buyback
According to the post by medium, a minimum of 27% of the total generated revenue of Bitfinex will be used in the purchasing of LEO tokens from the open market.
The CTO of Bitfinex, Paolo Ardiono, tweeted:
“We just concluded the buyback of Unus Sed $LEO tokens based on the 27% of margin funding fees accrued in the past 40 days. From this night UTC onward margin funding revenues will burned on a daily basis.”
Per the medium post, Bitfinex already claims to have already commented purchasing LEO tokens from the open market, it read:
“On a continuous basis, Bitfinex buys back UNUS SED LEO from the open market equal to a minimum of 27% of the revenues of iFinex, including trading fees, funding fees and revenues associated with Tokinex. This occurs in perpetuity, until no tokens remain in circulation. Over the past two months we’ve added numerous fee benefits to UNUS SED LEO token holders, including an array of taker fee reductions.”
The New York Attorney General Vs IFinex
This recent statement by Bitfinex comes only days after the NYAG (New York Attorney General) filed documents against both Tether (USDT) and Bitfinex.
The New York Attorney General in the filling alleged that the parent company of both Tether and Bitfinex, iFinex continued servicing New York traders, 4 years after they claimed they had restricted services.
In the presented documents, the NYAG provided evidence of multiple indications that the company still serviced New York traders even after 2015.