Drama Continues As Bitgrail Hacks $170M
As lawyers get involve, news from the $170 million hack of the bitgrail sometimes early this year keep mounting. A lawful action was engaged against Bitgrail’s Nano core development team. This action is to seek damages and a “rescue fork” to get back funds. A response came back from a group called Nano Foundation. They reacted and insisted that the authors of the hack are not the developers but Bitgrail itself. They also say that their fundraising is not for the victims but for their own suit.
A website reported that: “1 XRB could be bought for $0.20. One month later, 1 XRB had soared to $35 after gaining 17,500%, making it 2017’s biggest gainer and putting the likes of bitcoin, litecoin, and ripple in the shade.” This event happened during 2017’s massive price run up at the start of December. At that time, Nano was known as Railblocks, under the ticker.
Bitgrail suddenly paused trading in late January of this year, after experiencing what it means to have a capital worth hundreds of millions. They had announced an indefinite stoppage that resulted from a 17 million XRB/Nano “shortfall”, and they gave the assurance that authorities had been alerted.
Bitgrail announced in March that 20% of customer Nano had returned and the other 80% were to be made up in a new coin called BGS with the condition that Users, upon reanimating their accounts, would be required to sign away future legal claims against the exchange. We are not sure yet on the number of customers who were enthusiastic about that offer.
The class-action lawsuit by Alex Brola’s against four Nanocore developers based in Texas was unveiled online last week. According to the documents from the court, the original investment of $50000 grew up to 17000 Nano. He started his accusation by attacking the whole project. According to him, Nano is a security. And as such, any association with its sale is violating US securities law. He is then attacking the supposed integrity of the Bitgrail system.
Mr. Brola and other victims want their coins and fiat investments to be returned. That should be done along with a “rescue fork” to cover all damages incurred by Mr. Brola and the class and also to recover the said coins.