Bitfinex Securities, a digital asset platform, has announced that it will repay investors in its Hilton hotel project at El Salvador’s international airport. The project failed to raise the minimum required funding of $500,000.

Far too little money raised

This hotel project, which represented El Salvador’s first public offering of digital debt securities, reportedly raised just $342,000 by its first deadline. This is far short of the original target amount, representing just 5% of the $6.25 million target.

“Bitfinex will repay all investors in accordance with the Relevant Information Document,” a spokesperson confirmed. However, the platform will not take immediate action. “We expect the issuer to restructure the offer,” the spokesperson said.

Potential further steps have not yet been announced

Inversiones Laguardia SA de CV is the issuing institution. This institution has not yet announced any (potential) further steps. For the time being, Bitfinex has therefore removed the public offering from its website.

The funds raised were originally intended to build a Hampton by Hilton hotel, with an area of ​​approximately 4,500 square meters spread over 5 floors. The hotel would have a total of 80 rooms, along with a restaurant, work spaces, a swimming pool, a gym and a garden.

Investors had to invest a minimum of $1,000 to own a share of the Hilton hotel by purchasing the “HILSV” token on the Bitcoin Layer 2 Liquid Network. In return, crowdfunders would receive a 10% coupon over a period of five years.

Crypto in El Salvador

El Salvador, known for its Bitcoin investment and adoption strategy, expanded into the real asset tokenization space in April of last year by granting Bitfinex a digital asset services license. When the Hilton hotel project was announced, Bitcoin commentator Stacy Herbert described Bitfinex’s expansion as a “new era of capital markets” for Bitcoin in El Salvador, as it would provide locals with new access to financial markets.

Meanwhile, El Salvador wants to create investment banks that would give Bitcoiners access to financial services with fewer restrictions than traditional banks.


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