Italian cryptocurrency exchange Bitgrail’s Bitcoin removed by authorities following a court order

I age source: pixabay - geralt

Last month on 17 May, the Court of Florence fully upheld a preliminary order barring the exchange — which is currently undergoing bankruptcy proceedings — from resuming operations and once again offering trading services to customers. Source: CCN - Josiah Wilmoth.

A hack on the exchange left 17 million nano [XRB] worth $120 million missing. Exchange operators blamed the fault on developers of nano. However the Nano Foundation confirmed that the bug in Bitgrail’s exchange software is responsible for the exploit.

As a precautionary measure, Bitgrail were to shutdown the platform following the proposal by legal firm BonelliErede:

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.
Source: bitgrail.com

News came on 5th June, “pursuant to the Tribunal of Florence orders, the Bitcoins contained in the company's wallets were seized and brought under control of the judicial authorities pending further Court decisions in the prebankruptcy proceeding.”

Image source: pixabay - janeb13

Over 3000 victims of Bitgrail sought after BonelliErede, to file a petition aganist Bitgrail to declare the exchange bankrupt under article 6 of Italian Bankruptcy Law. Bitgrail instead pledged to issue 80 percent of the losses in Bitgrail Shares token and the remaining 20 percent in nano XRB and victims would therefore have to agree to gorgo any legal action against the exchange. A US Class action lawsuit has demanded Nano to implement a hard fork to compensate the victims. Source: cointelegraph - Marie Huillet.

The decision made by the authorities to further seize Bitgrail’s remaining assets did not help resolve the losses of the victims. Victims continue fuming over the matter as Bitgrail would continue to face pre bankruptcy proceedings. The Italian court would probably work to determine the findings, and proceed with the eventual redistribution of what’s left to outstanding creditors and victims. Source: news.bitcoin - Edward Kelso.

-tysler