BitGrail Cryptocurrency Exchange Legally Shut Down Three Hours After Re-Opening


The Italian cryptocurrency exchange BitGrail had to suspend its operations after receiving a notification from the court of Florence. BitGrail has been hacked back in February, losing $17 million Nano coins. At the moment of the attack, NANO was known as RaiBlocks (XRB).

BitGrail Suspends Operations After Re-Opening

On May the 2nd, the exchange re-opened again its trading services for all coins, with the exception of Nano. Three hours later, at 13:20 it had to shut down in response to a court order. A statement uploaded by the exchange reads as follows:

“This morning, following the re-opening, we were notified of a deed by the court of Florence requesting the immediate closure of BitGrail and this situation will persist until a decision is made by the courts, about the precautionary suspension request made by the Bonelli law office on behalf of a client.”

The exchange tried to compensate the customers affected by the hack with a self-issued token. According to a press release released by the company, BitGrail wanted to establish a cash fund dedicated to the users damaged by the theft.

“The new BitGrail Shares token will have its own market on BitGrail’s platform. It will be possible to trade the token, but not deposit it or withdraw it,” reads the document.

About the decision of the court of Florence, BitGrail communicated that the company disagrees with the decision but that they are obliged to respect the law.

The re-opening Update Says:

“Even though we don’t agree with this decision, we are obliged to respect the law and to suspend any BitGrail business immediately.”

Regarding the hack, BitGrail authorities maintain their rigid position stating that the ‘unauthorized transactions’ occurred due to a fault in the Nano protocol. The team behind Nano claims that the exchange had problems long before the attack.

At the moment, the victims did not recover their funds and are still waiting for a response from the exchange.

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