Bitfinex Recovery Right Tokens

It is possible that some or all of the bitcoins stolen from Bitfinex will be recovered, perhaps through the efforts of law enforcement or through our own outreach to the hackers. .

To further reward BFX token holders converting to equity, we have created a new token, the Recovery Right Token (the RRT) to compensate victims of the security breach and, thereafter, to offer a priority to early BFX token conversions.

If there is any recovery of the property stolen from Bitfinex on August 2nd, the first priority will be to use any recovery amounts to repay the then-outstanding (unconverted) BFX tokens. If there are any excess recovered amounts after all outstanding BFX tokens have been redeemed at full face value, those recovered property will be distributed to RRT holders as follows:

  • $1 per RRT; or,
  • if insufficient funds exist to pay back $1/RRT, then the balance of the recovered funds will be distributed among the RRT holders pro rata to their RRT holdings.

If the value of the property recovered exceeds the amount required to pay back outstanding BFX token holders and all RRT holders according to the above, any remaining amounts may be distributed as dividends to all iFinex shareholders, subject to the approval of the iFinex board of directors.

Investors exchanging BFX tokens will receive RRTs according to the following schedule:

  • If subscribed on or before October 7, 2016, each investor will get 1 RRT for each BFX token exchanged for shares;
  • If subscribed after October 7, 2016, and on or before October 31, 2016, each investor will get ½ an RRT for each BFX token exchanged for shares;
  • If subscribed after October 31, 2016, and on or before November 30, 2016, each investor will get ¼ an RRT for each BFX token exchanged for shares; and,
  • If subscribed after November 30, 2016, no RRTs will be delivered.

Note that current shareholders of iFinex will not participate in the RRT token program to the extent of any existing (i.e., pre-BFX creation) shares held in iFinex.

Note that users who converted through BFXtrust will see the RRT amount reduced by the 1% incoming fee that has been applied on the BFX tokens pledged to be converted.

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9 Comments
  • Stuart B.
    Posted at 19:06h, 11 October Reply

    Congrats Bitfinex!
    Keep up the good work.
    In my opinion I can see, you guys have been making every effort possible for a recovery.
    If/when you can can pull off a full recovery this will go down in the Bitcoin history books, and be testimony to this community and the Crypto/business world!

    • Kermit T. Frog
      Posted at 19:35h, 11 October Reply

      Yeah….this reply was DEFINITELY not written by someone at, or working for, Bitfinex.

      You people are scum.

      • Stephen
        Posted at 07:37h, 12 October Reply

        Hi Kermit, as someone who doesn’t work for Bitfinex I am with Stuart. I think this is a most fascinating experiment and often new ideas come from problems.

        I personally am very excited with what they are trying to do, probably because I have been a fairly early adopter and can see the benefits.

        I believe that if you believe cryprotocurrency is the way forward, then owning a bit of bitfinex makes a lot of sense. It is my opinion of course.

  • Daniel T
    Posted at 21:38h, 11 October Reply

    This post is made at 11 Oct 2016. Then you write:
    “If subscribed on or before October 7, 2016” so whats going on here?

  • John Hanekamp
    Posted at 02:23h, 12 October Reply

    If subscribed after October 31, 2016, and on or before November 30, 2016, each investor will get ¼ an RRT for each BFX token exchanged for shares; and,

    If subscribed after October 31, 2016, no RRTs will be delivered.

    These 2 sentences are contradictory.

  • Graves
    Posted at 03:31h, 12 October Reply

    Typo on last bullet point?
    Should be,
    “If subscribed after November 31st, 2016, no RRTs will be delivered.”

  • OP
    Posted at 18:01h, 12 October Reply

    Does BFX token holders a have priority over RRT holder when it comes to paying back hack losses? What about interest payment on USD amount owed to BFX token holders during that period?

  • Stuart B.
    Posted at 23:02h, 12 October Reply

    Kermit,

    For the record. I don´t work or have never worked for Bitfinex.

    Come on mate, do you really think Bitfinex are going to be spending time writing comments to try to make them look good? They are too busy trying to save their company, which was my point in the first place!

    Look, I was given a “Bitfinex haircut” of thousands of dollars from the hack as I had most of my capital there.
    Of course, I with everyone else was not happy about it.
    But I was aware that this is part of the risk we are all taking on. And to be honest it was a massive wake up call and have learnt a lot from it.
    We can´t honestly expect to have it all our own way, and my point was that I am impressed how Bitfinex pulled themselves together and found a possible solution so everyone wins.

    There are people who are whole again already because of what Bitfinex has done since the hack. They have given people the opportunity to get back in the saddle and get whole. There have been plenty of opportunities to figure out the best way to do this.
    I´m almost there myself. This is an amazing situation to be in and you yourself could be in the same boat.

    So dude, screaming at Bitfinex and calling them scum while under the disillusion that anyone who doesn´t follow your beliefs are working for them is a wast of energy. It could be better spend trying to make yourself whole again.

    If you want to trade cryptos on an exchange you have to understand the risks involved.
    What happened to Bitfinex is one of the biggest concerns our there for any trader using a crypto exchange.
    Trade with that in mind and any losses from a hack of exchange going down will be minimised.

    Peace.

  • Haroun Kola
    Posted at 09:21h, 28 October Reply

    How does one convert the BFX to RRT. Do you simply transfer the tokens into the conversion wallet?

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