Bitfinex to refund investors of the failed El Salvador Hilton Hotel project
Digital asset platform Bitfinex Securities says it will return money to investors after failing to attract the $500,000 minimum funding needed to resume operations at the Hilton Hotel at El Salvador's international airport.
El Salvador's first public offering of digital debt assets, the project raised just $342,000 from investors ahead of its initial deadline — just 5 percent of the $6.25 million it had to raise.
A Bitfinex spokesperson confirmed to Cointelegraph that “as per the required information document, Bitfinex will refund all investors.”
But Bitfinex will not act immediately. “We expect the issuer to adjust the offer,” said the spokesman.
However, the issuer — Inversiones Laguardia SA de CV — has not confirmed its next course of action.
For the time being, Bitfinex has removed the public offering from its website.
The money was intended to build a 4,500-square-foot Hampton by Hilton hotel on five levels with 80 rooms, a restaurant, co-working space, swimming pool, gym and garden.
To own a piece of the Hilton Hotel, investors had to invest at least $1,000 to buy the “HILSV” token on the Bitcoin Layer 2 Liquid Network.
Conversely, most people should have received a 10% coupon over a 5-year period.
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El Salvador, well-known for its Bitcoin investment and adoption strategy, in April 2023, Bitfinex expanded its digital asset service provider license into the real-world asset token space.
When the Hilton hotel venture was announced, Bitcoin analyst Stacey Herbert said Bitfinex's expansion marked a “new era of capital markets” for El Salvador's bitcoin, as it would give local people a new way to access financial markets.
Meanwhile, El Salvador wants to establish investment banks that offer financial services to Bitcoiners with fewer restrictions compared to traditional banks.
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