Tech 1 May 2018

Dennis Wafula

Bitgrail clients want Italian court to declare exchange bankrupt

Victims of the BitGrail hack in February has filed a petition asking an Italian court to declare the cryptocurrency exchange bankrupt.

BitGrail reportedly fell victim to a hack early this year, resulting in the loss of 14 million Nano coins worth $187 million at the time. The hack was reported on February 8, but BitGrail owner Francesco Firano told CoinTelegraph that the theft happened on January 19.

Last week, Italian law firm BonelliErede filed a bankruptcy petition on behalf of BitGrail creditor Espen Enger, who allegedly was in contact with more than 300 claimants. According to a Medium post, most of the alleged BitGrail victims were concerned that their assets will be depleted further, which was why they “prefer an immediate accounting of BitGrail’s assets in bankruptcy.”

Nano developers previously claimed Firano had asked for the altcoin’s ledger to be modified “so as to cover his losses” and allegedly “misleading” the community regarding the exchange solvency. In his defense, Firano claimed the fault did not lay with the exchange, but originated with Nano’s “totally unreliable” protocol leading to timestamp inconsistencies on the Nanode block explorer.

BitGrail vowed to refund the victims. In mid-March, the cryptocurrency exchange proposed to issue a newly-minted BitGrail Shares (BGS) token, which it said would cover 80% of the losses. The remaining 20% would be covered in XRB, according to BitGrail. However, victims would need to sign an agreement to forgo any legal action against the exchange.

This is the second lawsuit filed against BitGrail. In April, U.S. law firm Silver Miller filed a lawsuit on behalf of Alex Brola, an investor who sunk $50,000 into the Nano currency in 2017. In its lawsuit, Silver sought to have the altcoin conduct a hard fork that could “reset” its amount to where it was before the theft took place.

In response to the lawsuit, the Nano Foundation announced it would sponsor a legal fund to provide all BitGrail victims with legal representation.

Note: Tokens on the Bitcoin Core (SegWit) chain are referenced as BTC coins; tokens on the Bitcoin Cash ABC chain are referenced as BCH, BCH-ABC or BAB coins.

Bitcoin Satoshi Vision (BSV) is today the only Bitcoin project that follows the original Satoshi Nakamoto whitepaper, and that follows the original Satoshi protocol and design. BSV is the only public blockchain that maintains the original vision for Bitcoin and will massively scale to become the world’s new money and enterprise blockchain.

COMMENT

latest news

Russian state corp. proposes blockchain-based government data system

Tech 22 minutes ago

Russian state corp. proposes blockchain-based government data system

Rostec, a Russian state-owned holding conglomerate, has proposed the implementation of a blockchain-based government data storage system.

Read More
Alibaba to integrate blockchain with its intellectual property system

Tech 58 minutes ago

Alibaba to integrate blockchain with its intellectual property system

Alibaba is adding to China’s intellectual property regime by creating their own blockchain system.

Read More
Google Play warns customers of fake cryptocurrency apps

Tech 24 May 2019

Google Play warns customers of fake cryptocurrency apps

Google has caught two apps that were pretending to be popular crypto wallets, one of which was trying to steal user funds.

Read More
[data-clipboard-demo]
[data-clipboard-demo]
[data-clipboard-demo]
[data-clipboard-demo]
[data-clipboard-demo]
[data-clipboard-demo]
[data-clipboard-demo]
[data-clipboard-demo]
[data-clipboard-demo]
[data-clipboard-demo]