On Friday, February 9, 2018, Italian cryptocurrency exchange BitGrail
The 9:30 p.m. UTC announcement by the Florence-based exchange gives some cause for circumspection. The founder of the exchange, Francesco “The Bomber” Firano,
When news of the lost coins
However, there is some dispute (discussed below) on what actually caused the loss of coins. Whether it was an error in the BitGrail system, a planned exit scam or a hack from outsiders, taking or keeping the ill-gotten tokens seems ill-advised. The percentage of coins taken represents five times the current daily trading volume of Nano and would require careful offloading to avoid driving the price down by selling the coins.
Any scenario in which those lost coins could be dumped prior to the Nano coin gaining greater stability and trading volume forecasts a tumultuous time for the Nano team.
The Nano coin,
BitGrail vs. Nano
Relations between the coin and the exchange disintegrated over the weekend with Firano accusing the Nano team of libel and threatening to call the police “for irresponsible behavior,” while Nano retaliated in a “tell all” Medium post. In a de-evolution of relations, Nano core team member Zack Shapiro (in a deleted tweet to user @jsmoove08) defended BitGrail a day prior to the exchange’s announcement.
The Nano team issued this
From our own preliminary investigation, no double spending was detected on the ledger and we have no reason to believe the loss was due to an issue in the Nano protocol. The problems appear to be related to BitGrail’s software. We had no knowledge of BitGrail’s insolvency prior to February 8th.
It concluded with this accusation:
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.
Reactions from Firano were expectedly
In the wake of the unfounded accusations made against me by the dev team and of the dissemination of private conversations that compromise police investigations, BitGrail s.r.l. is forced to contact the police in order to protect its rights and users.
It should be noted that the Nano team relayed through its Medium post that they would“not be responding to individual posts or accusations by Firano regarding this situation.”
As BitGrail was one of the few exchanges that had been accepting Nano, the coin is now facing trading volume declines, down from the $50 million
Firano stated in the chat that he first noticed the bug eight hours prior to the conversation with Shapiro and LeMahieu. Shapiro challenged Firano’s timeline, asking, “If withdrawals have been closed for the last month, how did you not notice this? Someone with[sic] allegedly withdrawing for weeks according to you via this ‘hack.’”
Social Media Reacts
Users on social media
Regardless of fault, the turmoil caused by the loss of $170 million worth of Nano on the BitGrail exchange has left both the exchange and the dev team faced with accusations, angry customers and little recourse for those affected.
Published at Tue, 13 Feb 2018 14:58:34 +0000