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BitGrail Owner Ordered To Refund Customers After Being Hacked

Sanmi Adeagbo | Jan. 29, 2019
BitGrail Owner Ordered To Refund Customers After Being Hacked

BitGrail owner, Francesco Firano, has been sentenced to refund as much of customers' funds as possible after the cryptocurrency exchange firm was hacked.

January 29, 2019 | AtoZ Markets - A group of affected customers have released a court order scan on Monday, 28th June which sentenced BitGrail to pay back its customers' funds by declaring bankruptcy and selling off as much of their assets as possible.

BitGrail To Declare Bankrupcy

The Italian bankruptcy court published the sentence on 21st January. In a post on medium, it was revealed that the court ordered that both BitGrail and the owner, Francesco Firano be declared bankrupt. The court has therefore authorized seizures of many of Mr Firano's personal assets.

According to the post, millions of dollar worth of the company's cryptocurrency assets have been ''moved to accounts managed by trustees appointed by the court''. Along with the company's assets, the Italian authority has already confiscate over $1 million in personal assets of My Firano along with his car.

The Court Ruling

The court ruling revealed that on 12th January and 28th January, BitGrail temporarily blocked users after it was revealed that 17 million Nano cryptocurrency, which account to 80% of users' deposit, went missing. The administrator of the company thereby asked users to waive any legal actions so as to be able to withdraw the remaining 20% and join a refund program. The court observed fraudulent activities from BitGrail and thereby asked that their website be pulled down. The court ruling also explained that it was not the Nano wallet that allowed the multiple withdrawals but 'it was the BitGrail exchange that actually requested to the node multiple times to allow the funds to leave the wallet''. The company was also accused of security compromise by storing all of its nano cryptocurrency holdings in a 'hot wallet'.

Mr Firano was also personally accused of suspicious fraudulent activities. In July 2017, according to the court ruling, Mr Firano was aware that 2.5 million Nano was stolen from the exchange. He announced on Twitter on the same month that the involved exchange accounts have been blacklisted. In October 2017, another 7.5 million Nano was stolen. Firano's persecutors also reported that he deposited 230 Bitcoins in his personal account between 2nd and 5th February, 2018 - days after he announced the loss of the stolen assets.

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Disclaimer: The views and opinions expressed in this article are solely those of the author and do not reflect the official policy or position of AtoZ Markets.com, nor should they be attributed to AtoZMarkets.