Cryptocurrency Exchange BitGrail Loses 17 million Nano (XRB)

Cryptocurrency Exchange BitGrail Loses 17 million Nano (XRB)

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On Thursday, the Nano Core team was informed of the loss by the owner of BitGrail, Francesco "The Bomber" Firano.

In brief:

BitGrail, an Italian cryptocurrency exchange has lost about 17 million tokens of Nano cryptocurrency, with a market value of about $170 million.

BitGrail, an Italian cryptocurrency exchange on Friday declared that it has lost about 17 million tokens of a cryptocurrency called Nano, with a market value of about $170 million. BitGrail, the fifth most popular exchange for XRB trading according to Coinmarketcap, had been offline for weeks, and its customers feared the worst.

Without mentioning when the hack took place, the exchange on its website said, "Internal checks revealed unauthorized transactions which led to a 17 million Nano shortfall, an amount forming part of the wallet managed by BitGrail." Reportedly, the fault appears to be related to BitGrail's software.

On Thursday, the Nano Core team was informed of the loss by the owner of BitGrail, Francesco "The Bomber" Firano. So as to cover the losses, Firano allegedly tried to find out the chances of modifying the ledger, but the development team responded that this line of action: " is not possible, nor is it a direction we would ever pursue." After the loss of XRB, Bitgrail claimed insolvency and is not in operation.

The blog post states, "We now 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."

This controversy between the BitGlass and Nano teams indicates that the matter is not going to get resolved any time soon and as a result, users will find it difficult to get reimbursements.

The Nano team further stated, "Our team promptly contacted law enforcement and we are fully cooperating with law enforcement on this matter….We are preparing all information we have on the matter such as blockchain entries, screenshots, and chat logs."

According to some unofficial sources, the exchange had been insolvent for months, and the account from which user funds had supposedly been lost, (BitGrail Representative 1), had multiple transactions of large even numbers, (e.g. 3000, 5000, 8000 XRB) to the Mercatox exchange. The source said, "It certainly doesn't look organic."

Earlier known as RaiBlocks, Nano (XRB) uses a DAG (Directed Acyclic Graph) protocol similar to IOTA, with zero fees and scalability advantages. There is a maximum supply of 133 million coins which are all in circulation. Thus, the hack means a loss of over 10% of the total supply.

A Reddit user in an AMA post (Ask Me Anything) titled, "I lost 147k Nano ($1.4M and falling) in the Bitgrail hack," he wrote, "I've decided that the only way to deal with this is to move on as quickly as possible and keep making solid decisions. Negative emotions in times like these serve no one. I will continue to invest in cryptocurrency to the degree that I believe it has potential, and if it does, the worst decision I can make right now is stopping. I will be much, much more careful with exchanges in the future."

At the time when the crypto community is undergoing a bad phase, such positive attitude on part of users is indeed admirable to say the least. The financial loss is often experienced in the cryptocurrency world and recently a young Korean Bitcoin investor committed suicide due to the crypto crash.

Even before the event, users of BitGrail were reporting issues for being unable to withdraw their XRB from the exchange and many waited for identity registration. It is to be noted that only Nano cryptocurrency was lost in the incident, and no other cryptocurrency was stolen.

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