BitGrail exchange declares bankruptcy after almost a year of announcing $195 million loss

The year of 2018 has been a very volatile year for the cryptocurrency market. The year witnessed a majority of the coins hitting its highest value in terms of price and, at the same time, slump to its lowest value. Along with this, the year also saw several altcoins rise to fame in the space. The most notable event apart from the volatility of the market is considered to be the hacks that took place throughout the year. Well-known exchanges such as Coincheck fell prey to hackers, losing millions of customers’ funds.

BitGrail, an Italian cryptocurrency exchange, was one such platform that was compromised in early 2018. The exchange lost almost $195 million worth of customers’ cryptocurrencies. The exchange rose to fame as it became one of the major platforms to trade Nano aka RailBlocks. It was the very same cryptocurrency the exchange ended up losing to the hackers, as the Founder, Francesco Firano, revealed that 17 million Nano tokens were stolen by hackers.

The announcement of the hack was soon followed with speculation that this was a premeditated act and that the exchange had been planning an exit scam for quite some time. Even the Nano team expressed their doubts on the whole situation. In an official statement, the team had stated:

“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.”

On January 21, 2018, after almost a year of announcing that the exchange was compromised to an attack, the firm has now declared bankruptcy in their official telegram channel. Additionally, when asked about the bankruptcy on Twitter, the CEO, Francesco said that it is “confirmed”.

Bitgrail declaring bankruptcy | Source: Discord

Bitgrail declaring bankruptcy | Source: Discord

PaddyThePriest, a Redditor said:

“This is good news for Nano as far as I can see. Lays the blame for the hack at Bomber’s feet. Also shuts his lying mouth once and for all.”

Darkrender7, another Redditor said:

“If nano rockets upward like bitcoin did… it very well could turn out that he’ll be able to pay everyone back in fiat and make off will millions from selling the rest of the nano at the new high market price. Thats what’s going on mark and Mt. Gox”

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