Home News Exchange Court Orders BitGrail Founders to Reimburse Funds to Aggrieved Victims

Court Orders BitGrail Founders to Reimburse Funds to Aggrieved Victims

January 29, 2019 16:42
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Almost a year after, Francesco Firano, the owner and operator of the Bitgrail cryptocurrency exchange, announced that the exchange had lost 17 million NANO (approximately $ 170 million), an Italian court declared that Firano was responsible for the loss and ordered him to reimburse the victims.

As earlier reported by Crypto-News India, the hacked cryptocurrency exchange that was shut down due to a hack in January-February 2018 had its wallets being seized by a Federal court of Italy as part of preliminary bankruptcy proceedings, in June last year. At the time, the exchange had said, “On June 5, 2018, pursuant to the Tribunal of Florence orders, the Bitcoins contained in the company’s wallets were seized and brought under control of the judicial authorities pending further Court decisions in the prebankruptcy proceeding.”

In April 2018, a user, who was purportedly also a victim, had filed a bankruptcy petition against the company, requesting the court that the company be declared bankrupt on grounds that Firano had created BitGrail and the petitioner had held numerous cryptocurrencies such as Nano, XRB and bitcoin. In January last year, the exchange had (at first) temporarily stopped withdrawals, which escalated into a permanent situation. After a significant length of time, the exchange operators allowed the customers to withdraw their holdings, if they waived off legal action against the exchange.

Source: Medium

In the meantime, the media had already reported about the missing NANO from the exchange.

Following a lengthy trial, “the court concluded that both Bitgrail and Mr. Firano, personally, be declared bankrupt, authorizing seizures of many of Mr. Firano’s personal assets. So far, authorities have seized over $1 million in personal assets, including Mr. Firano’s car. Millions of dollars in cryptocurrency assets have been seized from Bitgrail’s exchange accounts and moved to accounts managed by trustees appointed by the Court”, a statement by the victims said.

The court, on Tuesday, also deduced that the NANO reported lost by Mr. Firano on February 9, 2018, had actually been removed from the exchange months earlier, between July 2017 and December 2017.

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