Simon Dixon BnktotheFuture Bitfinex Digital Distressed Debt Mechanism
In this sharing session at Paypal’s Singapore incubator, Simon Dixon of bnktothefuture goes through how his platform developed a third party fully digital mechanism to resolve bitfinex claims by end-users.
Following the events of the bitfinex hacks, consumers/end-users became de-facto trade creditors with claims against bitfinex, which entered into a soft digital version/analogue of chapter 11/judicial management. With bnktothefuture, which normally provides solutions for private equity into the crypto world, they worked out a means by which claims against bitfinex were swapped for equity in bitfinex; i.e. people or creditors who were bearish on bitfinex’s ability to survive would swap out their claims to people who would buy into the equity, or if they had existing claims they could do the swap claims via bnktothefuture.
In the crisis of the bitfinex aftermath, the global digital world had the opportunity to synthesise a fully digital crypto distressed debt market that would be more familiar in the halls of private equity plays or aggressive hedge fund debt litigation battles.