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Investors May Get Refund on Bitfinex’s Failed El Salvador Hotel Offer

Posted on by angelo
Investors May Get Refund on Bitfinex’s Failed El Salvador Hotel Offer

Investors in Bitfinex’s Hampton Hotel securities offering are reportedly due a refund after its fundraising failed to reach its $500,000 goal to build a hotel near El Salvador’s airport.

Local media outlet El Salvador.com reported that the “relevant information document” on the HILSV token used in the public offering contains a clause that allows investors to refund their investment if the fundraising fails to meet its goal.

The document, published on May 13, states that a refund is available if either “the minimum amount (minimum amount necessary to successfully complete the project), which for this issuance will be five hundred thousand United States dollars ($500,000.00), is not reached at the end of the public offering or (ii) if the issuance of the digital assets is cancelled.”

The token has only reached $342,000 since its launch on May 13. $158,000 less than the minimum amount required before the June 11 deadline. It hoped to reach a total of $6.25 million.

Read more: El Salvador relies on Bitfinex for daily bitcoin purchases

But the hotel may not be finished. The token’s issuer, Inversiones Laguardia, told Protos that the company “already has commitments for the entire round” and that its “goal with tokenization is to reach as many retail investors as possible.”

This is despite the HILSV document stating $500,000 was the “minimum amount necessary to carry out the project” at the time of this issue.

The public offering of securities was to build the five-story hotel, which was to have, among other amenities, 80 rooms, a swimming pool and a garden. It also offered investors free nights and even unlimited stays for five years, provided they invested at least $1 million.

3D rendering of the hotel from Bitfinex website.

The token was reportedly tradable with US dollars and USDT, but the latter are nowhere to be found on Bitfinex’s website or in the “Relevant Information Document.”

El Salvador.com requested comment from Inversiones Laguardia and went to the listed address of the headquarters to discover another company called Inglés Corporativo. Someone who answered the listed phone number for Inversiones Laguardia also claimed that it belonged to another company.

According to the HILSV document, investors can obtain their reimbursements through the same channels through which they made their initial investment.

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