Token Sale For LEO Revealed By Bitfinex Despite Tether Scandal

Token Sale for the LEO token is ready to be launched, at least that is what crypto exchange Bitfinex says in an attempt to recover the loss of the $850 million. The latest cryptocurrency news report that Bitfinex has a plan to replace the funds by simply issuing more tokens.

The crypto exchange hopes to issue more LEO tokens, $1 billion to be precise. However, skeptics believe that the news of launching the new token sale will bring many concerns of legal nature. Some of them include the legal troubles surrounding Bitfinex and Tether. Other issues include the outcome it can have to Bitcoin and other cryptocurrencies.

The Chinese crypto investor and shareholder Zhao Dong explained about the new token sale plan by publishing a document on Twitter over the weekend. His plan calls for Bitfinex spending about 27 percent of the monthly profits in order to purchase the tokens. The documents also show that if the company manages to get the $850 million back, it will be able to buy back the LEO tokens.

The money processor of Bitfinex, Crypto Capital, is currently at the center of a legal battle with the Southern District of New York. The prosecutors charge Crypto Capital for playing a role in the $850 million loss involving Tether and Bitfinex. If it somehow happens that a billion dollar worth is dumped on the market, it could heavily impact bitcoin just after the price started to rebound.

The new token sale seems extremely funny given the circumstances and Bitfinex’s legal issues. At the end of April, the New York Attorney General Letitia James obtained a court order in order to shut down the crypto exchange and Tether from operating any further in the state. However, as reported in the altcoin news, both Tether and Bitfinex issued rebuttals. They both claim:

‘’The New York Attorney General’s court filings were written in bad faith and are riddled with false assertions, including as to a purported $850 million “loss” at Crypto Capital. On the contrary, we have been informed that these Crypto Capital amounts are not lost but have been, in fact, seized and safeguarded.’’