Bitfinex announced a transparency initiative that will see its LEO exchange tokens being bought back and “burned”.
Bitfinex started the sale to cover an April default of $850 million flagged by the Attorney General of New York.
The company said on Friday, that the UNUS SED LEO Transparency Initiative will enable the public to see parent company, iFinex, use its gross revenue to buy circulating LEO Exchange Tokens at market prices as part of its token redemption system.
These will be demolished or burned, as the company efficiently pays back those who purchased the exchange token in a sale of $1 billion early last month. Bitfinex Buy Back and ‘ Burn ‘ The LEO Exchange Tokens.
The department of the AG said Bitfinex kept the lost million confidential and covered it with a loan from the tether stablecoin’s sister company, Tether Ltd.
The company stated that tokens will be burnt “every 3 hours until 100% of supply has been driven out of circulation.”
The mechanism of redemption came live on Friday at 10.00 UTC.
Bitfinex said that as the LEO tokens buyback improves, it will render the public with “real-time insights into all collected platform fees, and subsequent LEO burns” via a dedicated dashboard.