Bitcoin

Italian Court’s Seizes Hacked Crypto Exchange Bitgrail’s Bitcoin Wallets

Italian Court’s Seizes Hacked Crypto Exchange Bitgrail’s Bitcoin Wallets

In a first of a kind, the Italian court has taken over and seized Bitcoin wallets belonging to Bitgrail. Bitgrail has gone through a rough patch since February with clients persuading the court to take procession of the wallets from Bitgrail.

On the 8th of February disaster struck Bitgrail when 17 million Raiblocks which is the currency of Nano network was stolen from the Italian cryptocurrency exchange, Bitgrail. This 17 million was worth almost $170 million and led to the whole cryptocurrency going bankrupt.

Since bankruptcy was filed, the company complied with the court’s order.

The Tribunal of Florence said,

“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 prebankruptcy proceeding.”

So far what caused the theft is unknown, but much of it is pointing out to a bug in Bitgrail’s exchange software. It has also been revealed that most of the loss had not been made public in the hopes of keeping Bitgrail alive.

Bitgrail’s owner Francesco Firano had been asking Nano’s ledger to be modified to cover the loss according to Nano developers. However, Firano fired back blaming the whole fault on the Nano’s network and total unreliable protocol.

“To date, all reliable evidence we have reviewed continues to point to a bug in BitGrail’s exchange software as the reason for the loss of funds,” the Nano Foundation had written in an April update.

Bitgrail was one not to give up even trying to get back into survival mode several months after the problem in February. In March Bitgrail proposed a new crypto share called BGS token to cover 80% of the loss while the remaining 20% would be covered in XRB, however, victims did not agree to this.

Two months later in May BitGrail tried to reopen the exchange but in no use as it was forced to shut down three hours later. A lawyer acting on behalf of a BitGrail customer successfully petitioned the court to bar the company from resuming its operations.

The court has had enough of Bitgrail’s nonstop endeavors to come back from the dead and has taken charge now to solving the issues for the customer’s in a loss once and for all.

Image Source: “Flickr”

Amrit Mirchandani,  A hustler, who believes there is a solution to every problem. A strong believer of Blockchain and a Cryptocurrency enthusiast!
Currently living in the Digital Hub of India, Pune and an extremely friendly and optimistic person. Born and raised in the beautiful island of Sri Lanka and have run businesses ranging from Agriculture to the Digital World. I have had crazy Experiences in Asian Busy towns like Mumbai and Kuala Lumpur to African nations such as Madagascar.

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