BitGrail Stopped from Reopening by Italian Court of Florence After Bankruptcy
Even though BitGrail wants to get back into the cryptocurrency world, they won’t be getting this opportunity again. In a court ruling in the Court of Florence, Italy, the preliminary hearing that was given initially after the bankruptcy remains – they will not be reopening. This restriction prevents them from returning to their general operations, which also means that they won’t be tradeable among consumers.
The original preliminary order was brought to the table by legal first BonelliErede, who also announced the continuation of the order. This firm is still in the process of helping the 3,000+ users from BitGrail who want their investments returned to them, since they were once linked to XRB.
In a report from CCN, BitGrail admitted that they were bankrupt after they sacrificed 17 million XRB, which would be valued at $170 million at the time they went under. Exchange operator Franceso Firano, who is also known as “The Bomber,” avoided taking the blame for the major issues in the fun. Instead, he directed the blame over to the Nano protocol. In effort to fix the damage, he tried but failed at convincing the developers of the program to restore the original blockchain to bring back the funding.
Unfortunately, in the evidence collected by the Nano Foundation, they found that there was a threatening bug in the exchange software at BitGrail instead, which exploited the tokens. Despite the lack of responsibility that Nano has to take, they still created a legal fund that will help the affected parties to regain what is rightfully theirs.
This isn’t the only step that Firano took to try and get the platform up and running. On May 2nd, he tried to bring back the operations at BitGrail, but was stopped only three hours later. This block to restart the platform happened as a judge granted the request for precautionary suspension. In a statement from BonelliErede, they informed the public that the courts also took all remaining assets from BitGrail, which would be monitored by a third-party administrator.
We have temporarily disabled the BitGrail exchange pending further notice.
— BitGrail Exchange (@BitGrail) May 2, 2018
The Nano lead developer, Colin LeMahieu, has indicated that they aren’t done moving forward with their own plans, despite the tragic mistakes made by BitGrail.
“While the BitGrail situation is extremely unfortunate, it has not impeded the project. We allocated significant resources towards both determining what exactly happened, as well as investigating legal options, but as far as protocol development and overall project milestones are concerned, we have continued to move forward.”