Bitfinex, Kim Dotcom Part Ways, Planned Token Sale Is Off

Bitfinex and a blockchain venture introduced by Kim Dotcom have “mutually agreed” to separate ways, spoiling a planned initial exchange offering (IEO) for the controversial internet startup. 

Referring to the present “regulatory environment” and the “risks associated with raising funds” for the initiative, Bitfinex stated in a blog entry on November 6 that it was in light of a legitimate concern for its “community” not to have the sale of Dotcom’s kimcoin token.

Dotcom was eminently the founder of Megaupload, a file-sharing site closed down in 2012 for abusing piracy laws by the U.S. Department of Justice. He’s presently still in the process of requesting extradition to the United States from New Zealand, where he dwells.

The venture is a blockchain-based content-monetization network, described on its site as “providing a comprehensive suite of advanced services and technologies to manage, protect and sell every digital content.”

The IEO model of fundraising rose in 2019 and sees exchange platforms providing listing support and roll out campaigns for new startup tokens. Until now, Bitfinex has facilitated token sales for ventures Dusk, Ampleforth, and Ultra, among others.