Authorities from Italy have seized Bitcoin from BitGrail Wallets

Bitcoins seized following court order

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An Italian court ordered the countries authorities to seize Bitcoins from BitGrail exchange. The regulatory authorities have followed the order according to an announcement from the exchange which stated that all Bitcoins stored in its wallets have been seized by the authorities. According to BitGrail’s statement, the authorities removed all the funds from the wallets following the court order issued by the Tribunal of Florence.

The exchange has however not mentioned the worth of the seized coins. According to the statement from the firm:

“Following the Tribunal of Florence orders on 5th June 2017 all Bitcoins contained in the company’s wallets were seized and controlled by the judicial authorities pending the decisions of the court in the pre-bankruptcy case.”

The case against BitGrail was filed by victims of the exchanges hack stating that the exchange is already bankrupt under article 6 of Italian bankruptcy law. It’s stated that over 3,000 claimants have allegedly contact Espen Enger who is the current creditor of BitGrail. The exchanges problems started in February this year when it suffered a cyber-attack which caused the loss of 17 million Nano which was estimated to be worth 187 million dollars at the time of the hack. After the trading of the exchange was stopped Francesco Firano who is its CEO argued that it would be impossible to refund all the hacked amount.

The hack led to a lot of confrontation between the exchange and Nano Foundation because it was not clear whether the hackers exploited the vulnerability of Nano’s blockchain or BitGrail’s security weakness. Nano, however, proved to be supportive of any court decision announcing in April that it was ready to support any legal fund in the provision if victims of the hack with equal access in order for them to pursue their legal interests associated with the insolvency of BitGrail.

The exchange had reopened its operations of May 3rd and was ordered to shut down three hours after the reopening following a court order. The order of closure followed an application made by the Bonelli law office following a request from their affected clients. Following the closure order, the exchange stated that: “We are not in agreement with the court decision, however, we are obliged to follow and respect the law and therefore we have suspended all BitGrail business.

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