Bitgrail Release Insolvency Statement

February 22, 2018

Earlier this month, one of the most high-profile hacks in the cryptocurrency sector to date took place, as 15 million Railblocks (the Nano network’s former altcoin currency) were stolen from Bitgrail, an Italy-based cryptocurrency exchange.

In real terms, the theft amounted to something in the region of $150 million in value and both the Bitgrail exchange and the Nano Network are understandably enraged by the situation.

The owner of Bitgrail – Francesco Firano – was quick to blame Nano and its blockchain technology, claiming that the Railblocks went missing as a consequence of faulty protocols on the network, something that the Nano Core team have been quick to refute.

In a recent statement on Bitgrail’s declaration of insolvency, the Nano team advised that they contact law enforcement agencies the very moment they were informed of the loss by Firano, and that they are cooperating fully with them in the matter.

Having conducted their own preliminary investigation, Nano confirmed that they were unable to detect any evidence of double-spending (that is the same Railblocks being utilised in multiple purchases or trades, without a transaction being recognised) on the blockchain. Likewise they have no reason to suspect that the altcoins went missing due to an error with their protocols. Indeed, it has been subsequently confirmed that, on the day of the Railblocks’ ‘disappearance’ the blockchain nodes had been resynced and all ledger entries date and time-stamped.

The Nano team went on to say that they have reason to believe that Firano has been deliberately misleading both them and the whole Nano community regarding what has transpired, particularly since he had failed to inform them of Bitgrail’s insolvency prior to the funds going missing from their wallet.

Nano further said that Firano suggested that they amend the ledger in order to cover the loss of Railblocks from the Bitgrail wallet, which shows a fundamental misunderstanding of how cryptocurrencies in general, and the blockchain in particular actually operate.

Nano’s Core Team confirm that they are assisting law enforcement agencies with their enquiries in this matter.

Image Source: Pixabay

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