BitGrail Saga Coming to Finale: Italian Authorities Seize Funds, Victims Reimbursement in Sight

bitgrail hack

BitGrail Saga Coming to Finale: Italian Authorities Seize Funds, Victims Reimbursement in Sight

BitGrail, the hacked Italian bitcoin exchange, which lost approximately $170 million worth of the cryptocurrency NANO, has faced seizure of its Bitcoin Holding by Italian authorities after the order passed by Court of Florence. The same was confirmed by BitGrail’s founder Francesco Firano tweeted.

 

 

BitGrails Hack trails and court proceedings

Earlier this year in February 2018, the Italian based exchange announced that due to a discrepancy in its wallet-maintenance code, over $170M worth of NANO (the formerly known “RaiBlocks” cryptocurrency) was stolen from user’s accounts. A number of lawsuits, user complaints and outrage, and pending criminal investigations followed shortly after. Ultimately in April, the Nano Foundation said that it has decided to provide help to the user who fell victim to the hack by sponsoring a legal fund.

The aim of this fund was to ensure that users who can not afford a legal battle be granted the chance to participate in legal proceedings against the Italian exchange. Espen Enger, along with Italian law firm Bonelli Erede, was appointed as the representative for the consortium of 1400 victims which sought help from Nano’s Legal Fund. Finally on June 5th, 2018 the Court of Florence ordered the seizure of all BTC contained in the Bitgrail wallets which were confirmed now by Francesco Firano.

Francesco revealed the seizures while arguing with various users on Twitter who believed that the exchanges inaction caused them the damage. Francesco also blamed the user lawsuits which led to exchange to file bankruptcy. He believed that if people would have supported him than filing lawsuits against him he would have been in a better position to help them.

 

 

 

 

 

 

 

 

Also, read: Will $170 Million BitGrail Hack Mark the End of Nano?

What lies ahead for BitGrail victims: Reimbursement or a long wait

BitGrail has suspended all trading activities since the seizures of its holdings, and all links on their homepage link directly back to the announcement confirming authority involvement. In a small post circulated on their official news network, BitGrail confirmed the fund seizures by Italian Authorities, and updated the community and users notifying them that the site is undergoing “maintenance” with an unknown finish date undecided “pre-bankruptcy proceedings.”

While statements regarding BitGrail bankruptcy filings are not official or confirmed as of yet, it seems as if its fate has been sealed.

The news of seizures has upset many when law enforcement gets involved in this sort of a case its process of recovery is slow and sometimes, it may take months or even years to for recovery and reimbursement. While the community is displeased, Francesco in its above-mentioned tweet has shunned away from the responsibility by saying that “I cannot do anything”

Although time-consuming, there is still hope to many that the involvement of authority might help them get their money back and hope this stands true.

Will the legal course provide help in getting lost NANO, or fiat equivalency, back in their crypto wallets of the victims? Do let us know your view on the same.

 

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BitGrail Saga Coming to Finale: Italian Authorities Seize Funds, Victims Reimbursement in Sight
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BitGrail Saga Coming to Finale: Italian Authorities Seize Funds, Victims Reimbursement in Sight
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BitGrail, the hacked Italian bitcoin exchange, which lost approximately $170 million worth of the cryptocurrency NANO, has faced seizure of its Bitcoin Holding by Italian authorities after the order passed by Court of Florence. The same was confirmed by BitGrail’s founder Francesco Firano tweeted.
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Nilesh Maurya 675 Articles

Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Follow him on Twitter at @KoinKing1 or reach out to him at nilesh[at]coingape.com

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Nilesh Maurya 675 Articles

Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Follow him on Twitter at @KoinKing1 or reach out to him at nilesh[at]coingape.com

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