Italian Law Firm Petitions To Declare BitGrail Exchange Bankrupt After Losing 17 Million Nano (XRB) Tokens

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BonelliErede, an Italian law firm recently announced that it has filed a petition in the Italian court to declare BitGrail exchange bankrupt under the article 6 of Italian Bankruptcy Law. The petition is being filed by the victims of theft after reportedly losing 17 million Nano (XRB) tokens which were around $187 million worth when the theft took place on 19th January 2018.

The present value of the tokens could have been around $124 million. The petition says that the BitGrail hack has affected more than 3,000 victims and a BitGrail creditor, Espen Enger is representing the whole petition on behalf of all these victims. Prior to filing the petition, a heated argument took place between the founder of BitGrail Francesco Firano and Nano Foundation. Although the exchange was hacked in January, the report of the theft came out almost 3 weeks later on 8th February.

The filing of the petition is the latest development in this case as announced by the representative of BonelliErede on Reddit, Friday, April 27. The BitGrailVictimsGroup posted on Medium that the law firm is filing on their behalf the bankruptcy petition led by Enger. According to Enger who said that most of the victims want that accounting of the assets of BitGrail involved in bankruptcy should be immediately done or else they can end up losing more.

In its blog post, Nano Foundation said, “In filing for a declaration of bankruptcy, a decision has been made to trust the Italian legal system to resolve the conflict.”

Firano Blames Nano’s Unreliable Protocol For Losses

The rally of accusations between the victims of the theft, Firano, and Nano developers has been continuously going on. Earlier, the Nano developers accused the founder of BitGrail of modifying the ledger of altcoin for covering his losses. They alleged that this misled the community about the solvency of the exchange.

However, Firano denied all such allegations and in turn accused the totally unreliable protocol of Nano for the losses. In his reply, Firano said that the timestamp inconsistencies on the Nanode block explorer are responsible for the entire issue. Last month, the BitGrail exchange declared that it would refund the victims by covering 80% of the losses by offering the company’s newly minted BitGrail Shares (BGS) token to them and remaining 20% paid in XRB. However, the proposal expected the victims to sign an agreement forgoing any legal action against BitGrail.

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