Category Archives: Bitgrail

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Italian Court Orders BitGrail to Repay Missing Crypto Worth $170 Million

Italian Court Orders BitGrail to Repay Missing 0 Million Crypto

The long-running case against cryptocurrency exchange BitGrail has reached another stage in Italian courts with a judge ordering the exchange’s founder to repay a missing USD 170 million worth of cryptocurrency.

The original hacking prompted BitGrail to freeze trading in February, followed by the Nano community starting a legal fund through creditor Espen Enger who represented nearly 600 victims at the time. A file for bankruptcy was then made against BitGrail by Italian law firm BonelliErede as the argument between BitGrail’s owner, Francesco “The Bomber” Firano, and The Nano Foundation, became more heated.

In March of 2018, Bitgrail said that it would refund victims of the hacking to cover 80% of their losses by issuing a new token (BGS) and the remaining 20% in XRB. However, victims were required to sign off on taking any further legal action against the exchange.

The court has ordered that Firano must now declare bankruptcy as well as forfeit personal assets, and return as much of the stolen digital assets as possible. Court documents indicate that millions of Firano’s assets have already been seized along with millions of dollars of cryptocurrency held by the exchange.

It has now come to light that Firano is accused of mismanaging clients funds, particularly relating to security issues surrounding BitGrail users’ private keys, also transferring client funds into company wallets. Also, millions of dollars of NANO had been lost as a result of repetitive withdrawals, without Firano informing users.

Prior to the reported loss of the USD 170 million worth of cryptocurrency, Firano allegedly made a deposit of BTC 230 (USD 1.8 million) onto another exchange in order to make a fiat exchange for euros.

 

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Italian Bitcoin Wallets Seized In Continuing BitGrail/Nano Saga

BitGrail has announced that bitcoins stored in the firm’s wallets have been seized from its Italian exchange by authorities, reports CoinTelegraph.

The Tribunal of Florence court order to seize the funds is part of an ongoing saga in the Italian courts which began when a US class action was filed against the company in order to compensate victims for the loss of 17 million XRB (Nano) tokens, thought to have been stolen in January of this year. They were worth about USD 187 million at the time the theft was reported.

The original hacking prompted BitGrail to freeze trading in February, followed by the Nano community starting a legal fund through creditor Espen Enger who represented nearly 600 victims at the time. Reportedly, BonelliErede is now filing the bankruptcy petition on behalf of Enger who has made contact with over 3,000 claimants and made a statement indicating that a speedy and “equitable” resolution was needed:

In the latest in this complex case, the recent new court action revealed:

“On June 5, 2018, pursuant to the Tribunal of Florence orders, the bitcoins contained in the company’s wallets were seized and brought under control of the judicial authorities pending further Court decisions in the pre-bankruptcy proceeding.”

The hack caused a series of arguments between BitGrail and the Nano Foundation over which of the two companies were the vulnerable parties. For its part, the Nano foundation suggested it will provide the victims of the hack through the establishment of a legal fund and access to legal support to pursue their claims against the now insolvent BitGrail.

The seizure of BTC was authorized after a petition to the court filed by victims of the BitGrail hack, asserting that the exchange is bankrupt under article 6 of Italian bankruptcy law.

In other news from Italy, the Bank of Italy’s deputy governor has just announced that the country’s central banks have no current plans to issue government-backed cryptocurrencies, according to Cryptona.

 

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