BitGrail, one of the cryptocurrency exchange platforms, based in Italy has released an official statement that all the Bitcoin [BTC] in the BitGrail’s wallet was seized in the pursuit of the orders from Tribunal of Florence. The seizure was the consequence of the bankruptcy that happened earlier on 8th February 2018 where Nano worth more than $195 million were stolen due to a security breach.
Bitgrail’s founder, Francesco Firano, gave an official statement on February 9th, 2018, that nearly 17 million Nano tokens were stolen from the platform. From then, BitGrail had suspended its activities and the users were not able to make any kind of transactions.
As soon as the hack took place and the BitGrail platform went down, the founder of BitGrail, Francesco Firano and the Nano developer, Mica Busch accused each other of the hack. Firano stated that the poor security conditions in Nano blockchain, like the time stamp and the Nano Block explorer, made the hack possible. He had tweeted on February 18th stating:
“All these accusations convince myself that it is better to declare bankruptcy and let Italian justice take its time”
Following this, Espen Enger took up the collaborative responsibility of filing a complaint against BitGrail in the month of April.
On 1st May 2018, BitGrail gave an official statement stating:
“We are pleased to announce that BitGrail will commence operations on 2 May 2018 at 10:00 UTC. The markets and withdrawals will be operating for all coins, except for NANO/XRB. BitGrail re-open the NANO/XRB market for users at a date to be announced shortly.”
However, on 2nd May, a precautionary suspension request was made through the Bonelli law office and the Court of Florence issued an order to stop the functioning of BitGrail. BitGrail mentioned in their official news page:
“Even though we don’t agree with this decision, we are obliged to respect the law and to suspend any BitGrail business immediately.”
Chris Blec, a crypto-enthusiast tweeted in the month of January:
“1/ Apologies in advance for any FUD but I’m really concerned about Bitgrail. It’s showing all the signs of a disaster waiting to happen.”
Luc Chase, a Twitter user commented:
“Very bad news to see the court seized the remaining assets. Which idiot thought bringing the courts in could ever be a good move? We need Bitgrail to trade it’s way out of this mess. Now it is a guaranteed loss.”
Crypto Invest has optimistically commented:
“We all look forward to get as much as we can and see whoever is responsible in jail…”
With all the chaos happening around, Firano tweeted:
“If you didn’t understand it, I no longer have access to the funds deposited on Bitgrail. They were seized as a result of the lawsuits promoted by Espen Enger. No need to continue to contact me, now I can not do anything. You’il have to wait for the courthouse.”