Bitfinex is registered in the British Virgin Islands and its headquarter is in Hong Kong. It is a cryptocurrency exchange that is owned and operated by iFinex. The customer’s money of Bitfinex has been lost or stolen in several incidents, after that they were unable to secure good relationships with banks.
In April 2019, prosecutors in New York alleged that the cryptocurrency exchange Bitfinex has lost 850 million dollars of corporate funds and clients, and later on they used that money from Tether, affiliated Stablecoin, in order to cover all those losses. According to the State Supreme Court ruling on Thursday, cryptocurrency exchange Biftinex must have to face the allegations from New York.
Bitfinex parent iFinex that operates both tether and Bitfinex has shown argued that those funds have been deposited with a Panama based company and later that funds have been seized by the authorities in different countries. They also mentioned that the firm is working to recover the funds that are seized by the Polish, Portuguese, and American government. That argument has been denied and rejected in court appeals. Court has rejected the argument that tether was not a commodity and nor security.
Recently, iFinex has invested 1 Million dollars into a Dutch-based company called Dusk Network to generate a regulated token platform. It was announced by them in a press release held on Tuesday. Dusk said that the capital will go forward a new exchange that will produce new types of tokenized assets into the European market. According to the CoinDesk spokesperson, it will be completely separate from Dusk Network itself.
Dusk Network is a technology that provides securities, it is an open-source that provides secure (DLT) blockchain infrastructure that crypto companies use to tokenize financial instruments such as commodities, equities, (ETFs) exchange-traded funds, and bonds.
The exchange will stick on to the markets in the (MiFID II) financial instrument directive. It is an EU regulatory framework for investor protection and transparency, and it will soon be able to operate across Europe.
Financial instrument directive (MiFiDII) is a lawmaking framework, which is instituted by the (EU) European Union. MiFiDII provides services to improve investor protection and to regulate the financial market in the bloc. The purpose of the framework is to standardize practices and to restore the confidence in the industry in Europe, Specially, after the financial crises in 2008.
However, in that press release on Tuesday, Dusk spokesperson denied revealing whether iFinex will get an equity stake or they will receive a token in return for this investment.