BitGrail Exchange Temporarily Disabled After Opening for Three Hours

BitGrail Opens for Three Hours Before Legally Forced Shutdown

0 606
  • BitGrail Exchange Shutdown three hours after resuming operations.
  • This was due to the precautionary suspension request made by the Bonelli Erede law office on behalf of a client.

BitGrail Exchange, Italy: On Wednesday 2nd May, BitGrail, the recently hacked Italy-based cryptocurrency exchange tweeted that it has reopened its exchange and resumed operations, but three hours later, the exchange reported its temporary closure.

Later on Wednesday, Bitgrail Exchange published an announcement on its website, explaining the cause of the abrupt shutdown, which it claimed does not “agree with”:

“This morning, following the re-opening, we were notified of a deed by the court of Florence requesting the immediate closure of BitGrail and this situation will persist until a decision is made by the courts, about the precautionary suspension request made by the Bonelli law office on behalf of a client.

The decision is scheduled for May 16 2018.

Even though we don’t agree with this decision, we are obliged to respect the law and to suspend any BitGrail business immediately.”

On the 8th of Feb., 17 million Nano tokens, which presently worth about $136 million, were hacked from the Italian crypto exchange. The Nano loss caused a controversy between Nano developing team and BitGrail’s owner and operator, Francesco “The Bomber” Firano, after the Nano team claimed that Francesco had reportedly asked for the alteration of the Nano ledger in order to cover the losses – a report that Francesco repudiated.

Till now, it remains unclear where the fault for the hack lies, either subpar security from BitGrail or an issue with Nano’s blockchain. In March, BitGrail made a promise to reimburse its victims, offering to cover 80% of the losses by issuing its own newly created token, BitGrail Shares (BGS), with the remaining 20% in Nano. However, the qualification was that the victims of the hack would have to sign an agreement to decline any legal action taken against BitGrail.

In April, a U.S. class action lawsuit was filed against the Nano developing team that alleges that Nano’s core team illegally sold unregistered securities as well as negligently misrepresented the reliability of BitGrail Exchange. The lawsuit demanded that the Nano Core Team hard-fork the Nano’s protocol so as to reimburse victims.

You might also like