'Not a White Paper': Marketing Document Details $1 Billion Bitfinex Token Sale

New details are emerging about a planned $1 billion token sale to be held by iFinex, the parent company of Bitfinex and Tether, two cryptocurrency companies currently being sued by the state of New York for allegedly covering up a $850 million loss in customer funds.

The document makes explicit that it is "Not a white paper," meaning it does not provide technical specifics including which blockchain or blockchains the new cryptocurrency for sale will trade on, or the cryptographic specifics of how its code will enable peers to move and transfer funds.

According to the document, the tokens are to be issued by Unus Sed Leo Limited, a new company owned by iFinex.

In total, 1 billion tokens will be issued by Unus Sed Leo Limited, each selling for 1 USDT, the US-dollar backed stablecoin issued by Tether.

"The tokens will be sold in a private offering without the means of general solicitation or general advertising. Any tokens that remain issued may be sold in the manner and times determined by the Issuer in its sole discretion."

In a move that recalls how it issued tokens in the wake of its August 2016 hack, Bitfinex indicated the tokens will be created as a temporary measure, and that the company intends to buy back tokens as a means of ensuring customers are ultimately refunded.

At the time, Bitfinex issued roughly $72 million in 'BFX tokens,' cryptocurrency that was eventually bought back based on proceeds from exchange revenues by April 2017.

Purchases will be made monthly, "Equal to a minimum of 27 percent of the consolidated gross revenues of iFinex from the previous month, until no more than 100 million LEO tokens remain."

The document continues: "Repurchases will be made at then-prevailing market rates. LEO tokens used to pay fees may also be burned."

Any funds recovered will be used to "Repurchase and burn" outstanding LEO tokens, the document says.