Bitfinex might try to raise around $1 billion via a token sale in the upcoming week. Zhao Dong, a Shareholder of Crypto Exchange has unveiled details about the firm's plans to issue an Initial Exchange Offering (IEO) previously this week.

As per the report shared by Crypto news media CoinDesk, Bitfinex shareholder posted on a public chat in WeChat on Wednesday, highlighting that the sale will provide a total supply of 1 billion tokens, priced at $1 per piece with the least buy-in of $1 million.

Zhao who operates the leading Chinese BTC over-the-counter trading desk and is also the founder of Singapore-based firm Defund stated that $500 million tokens have already subscribed. He further said, “Only qualified foreign investors will be allowed to invest,” he wrote, and all the users who are excited should take a “soft” commitment to the sale by Sunday.

As soon as the investors will chance to review the token's white paper, they will have an option to cancel the soft commitment or cement it as a hard commitment by offering 10% deposit, Zhao finally said. He added, 

“The system works on a first-in, first-served basis. If all tokens are fully allocated, we will not have to run the IEO to the retail channel, it will be like a private placement.”

It is still not known how these proceeds will be utilized even though it is possible that the exchange might use these funds to cover $850 million shortfall it suffered last year as it's payment processor's funds were captured by natural authorities.

The new token has allegedly defined by Zhao as the hybrid model for Crypto Exchange Binance's native token Binance coin (BNB). The token is being used by the Binance users to pay for exchange trading fees.

Earlier, BFX tokens were issued by the Crypto Exchange in 2016 to repay Bitfinex users affected by the major hack, which has entrained a theft of 120,000 BTC.

As per recent reports, the New York Attorney General’s office claimed that Bitfinex has lost $850 million in user deposits, and then later cover the whole using funds from Tether. Later, one Lawyer claimed that Tether is only 74% backed by Cash and Equivalents.

In one official statement, Tether rejected the charges, saying that "New York Attorney General’s court filings were written in bad faith and were riddled with false assertions, including in regard to the purported $850 million loss."