BitGrail Italian Crypto Exchange Hack Nano XRB

Italian Crypto Exchange, BitGrail, Can’t Account For $170 Million In Nano (XRB)

An Italian cryptocurrency exchange by the name of BitGrail has become the latest victim of cyber-attacks. On Friday, 17 million Nano (XRB) (formerly known as RaiBlocks) tokens were swiped from the exchange, amounting to $170 million in losses. News of the hack pushed Nano down 23.23%, through afternoon trading on Saturday, February 10, 2018.

Source: CoinMarketCap

Source: CoinMarketCap

BitGrail is not the only exchange to be targeted by a large scale hack this year. The Japanese exchange Coincheck had $530 million in digital currency stolen just last month.

Korean exchanges Youbit and Nicehash were also attacked in December. The attacks resulted in the shutdown of Youbit. Nicehash, on the other hand, lost $70 million in cryptocurrency.

BitGrail did not refer to the loss as a hack. Rather, they stated in a note on their website that “internal checks revealed unauthorized transactions which led to a 17 million Nano shortfall.”

The owner of BitGrail, “Francesco The Bomber” Firano, informed users via Twitter that they could not reimburse users with 100% of their losses. The exchange only has 4 million Nano in their possession; less than half of what was stolen.

Source: Twitter

Source: Twitter

It seems that BitGrail is engaged in a dispute with the developers of Nano. Firano stated on social media that the developers did not want to cooperate. In a different tweet, he referenced “unfounded accusations” the dev team had made against him. It appears private conversations between Firano and developers had been leaked, prompting him to get the police involved.

According to developers, Firano had requested that Nano ledgers be altered in order to cover the losses. They released an official statement via the Medium blog, saying “we have sufficient reason to believe that Firano has been misleading the Nano Core Team and the community regarding the solvency of the BitGrail exchange for a significant period of time.”

Source: Twitter

Source: Twitter

All transactional activity through BitGrail was suspended following the hack. Many BitGrail users felt the response of the exchange was poorly handled. Members of the Nano community are currently working together to file a class action lawsuit.

Nano prices continue to see selling pressure following the hack. However, other major cryptocurrencies such as Bitcoin and Ethereum seem to be unaffected and continued to rally.

 

Article By: Frank Marino-Moore

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Matt Rego

Matt is the Founder and CEO of Spotlight Growth, a full service investor relations and awareness service provider. Prior to launching Spotlight Growth, Matt worked six years within the investor relations industry, most recently serving as Vice President of Sales and Marketing at Global Discovery Group, Inc. In addition, Matt has been a financial writer and analyst since 2010 and investing in the stock market since 2007. Articles and content have appeared on well-known financial websites, such as: Investopedia, Google Finance, Yahoo Finance, ValueWalk, Minyanville, Seeking Alpha, CBS MoneyWatch, Investment Underground, Emerging Growth, Blasting News, GenYWealth, and more. In addition, Matt has received an honorable mention in Barrons’ and the New York Post. Matt graduated from the University of Minnesota with a Bachelor’s Degree in Finance.