Nano, Again in Trouble Because of the BitGrail Hack

Jan 7, 2019 at 10:17 Update Date :Jan 7, 2019 at 10:17 UTC

Once again, Nano’s developers and some other parties are facing the allegations of fraud and violation of the Securities Act. According to the lawsuit the defendants tricked the investors. The lawsuit was proposed in a California federal court on Friday.

Also Read: Apple Has Lost as much as the Market Cap of Bitcoin

The lawsuit names Francesco Firano, Nano as an entity, BitGrail, and four others. Nano developers even tried to protect BitGrail who had once given a huge chunk of money to Nano. Its defendants made every effort to prove that there is no relation between Nano and BitGrail and they are not involved in the operations of BitGrail which are related to XRB. According to the lawsuit,

“The Nano Defendants have made every effort they could conceive of to distance them from BitGrail and erase the fact that each was substantially involved with BitGrail’s operations related to XRB. Indeed, the Nano Defendants have even gone so far as to fund a lawsuit against its former partner-in-crime, the BitGrail Defendants, so as to avoid unwanted attention for their actions. For example, on April 6, 2018, a putative class action (which has since been settled on an individual non-public basis) was filed in the United States District Court for the Southern District of New York. A mere three (3) days later, on April 9, 2018, the Nano Defendants announced that the Company was “sponsoring” a “legal fund” purportedly designed to “provide all victims of the hack of the cryptocurrency exchange BitGrail with equal access to representation” and enable such investors to seek recourse against the exchange.”

It is not the first time that Nano is facing such kind of allegations. Before this, Fabian, a litigation secretary in San Francisco who was also an investor in Nano lost $260,000 in BitGrail hack. The lawyer of James Fabian said that Nano is liable because it violated the securities law and encouraged its users to buy and store their Nano coin on BitGrail. According to the lawyer, Nano, its core team, BitGrail, and owners of BitGrail are liable for the losses. In another lawsuit, Plaintiff Alex Brola said that he had invested $50,000 into Nano, eventually his funds grew to $237,000 and then he lost everything in a breach of BitGrail.

According to the lawsuit, to avoid all these issues Nano could develop a technical solution by rewriting the XRB code. The defendants can create a rescue fork to protect the users and the class property rights but the defendants did not implement that strategy.

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