11 Oct 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.