So Bitfinex’s parent company, iFinex, has come up with a brilliant scheme to plug the gaping hole in its balance sheet. GettyThis is not the first time Bitfinex has plugged a hole in its balance sheet by issuing tokens. At first sight, the token scheme appears to be about raising new money to recapitalize Bitfinex and Tether. But because iFinex owns both Bitfinex and Tether, the “arms-length” loan is a fake and the self-collateralization is potentially fraudulent. Usually, such a coin would be a form of marketing: buy our coin, get discounts on our exchange.

Source: Forbes May 05, 2019 12:24 UTC