Bitfinex to refund investors of its failed El Salvador Hilton hotel project
The project, which aimed to be the first public offering of digital debt assets in El Salvador, failed to reach the required $500,000 minimum funding. Only $342,000 was raised from investors, representing just 5% of the $6.25 million target
Bitfinex Securities, a digital asset platform, announced that it will refund investors who participated in its Hilton hotel venture at El Salvador's international airport. The project, which aimed to be the first public offering of digital debt assets in El Salvador, failed to reach the required $500,000 minimum funding. Only $342,000 was raised from investors, representing just 5% of the $6.25 million target.
"As per the Relevant Information Document, Bitfinex will be refunding all investors," a Bitfinex spokesperson confirmed with Cointelegraph. However, Bitfinex will not act immediately. "We expect the issuer to restructure the offer," the spokesperson added. The issuer, Inversiones Laguardia S.A. de C.V., has yet to confirm its next steps. For now, Bitfinex has removed the public offering from its website.
The funds were intended for the construction of the Hampton by Hilton hotel, which would have been 4,500 square feet in size, with five levels and 80 rooms, as well as a restaurant, working area, swimming pool, gym, and garden. To participate in the project, investors had to make a minimum $1,000 investment to purchase the "HILSV" token on the Bitcoin layer 2 Liquid Network. In return, they were promised a 10% coupon over a 5-year term.
