//BitGrail Exchange Theft – 17 Million Nano Stolen

BitGrail Exchange Theft – 17 Million Nano Stolen

BitGrail, a small exchange, reportedly suffered losses of one of its hosted tokens, Nano (formerly known as Raiblocks), subsequently freezing trading. In a note on their website posted Feb. 9, the exchange stated that 17 million Nano had been stolen in the hack, an amount worth about $187 million at the time the losses were discovered.

A day after they were informed of the hack on Feb. 9, Nano developers provided an official comment showing that BitGrail’s owner and operator Francesco “The Bomber” Firano had asked for the altcoin’s ledger to be altered.

Nano wrote in a Medium post:

“…Firano informed us of missing funds from BitGrail’s wallet. An option suggested by Firano was to modify the ledger in order to cover his losses — which is not possible, nor is it a direction we would ever pursue,”

Nano promptly dropped almost 20% across exchanges in the past two days, while updates from BitGrail on social media have yet to appear, except for a tweet Feb. 8 saying Nano (XRB) markets were “currently unavailable”.

However, a Twitter user named Francesco the Bomber, allegedly Firano, posted a string of tweets about the hack, the most recent of which referenced “unfounded accusations…by the dev team”, likely a response to Nano’s post on Medium.

The reputation of both Firano and BitGrail currently appears shaky, Nano continuing it considered his behavior “misleading.”

The Nano team post continues:

“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,”

The BitGrail debacle comes as dust continues to settle on Japanese exchange Coincheck’s giant $530mln hack late last month. Although accusations of foul play have been few, questions remain about security practices as state regulators conduct an ongoing major investigation.

On Twitter, cryptocurrency industry commentators reacted cautiously, one likening Firano’s request to what happened in the DAO hack in June, 2016, after which Ethereum was hard-forked to refund users. Nano noted that even if Firano’s request were accepted, changing transaction history was “not possible”.

Yesterday this notice was posted on the BitGrail website:

Important notice

Bitgrail S.r.l. Informs its users that internal checks revealed unauthorized transactions which led to a 17 million Nano shortfall, an amount forming part of the wallet managed by Bitgrail S.r.l.

Today a charge about those fraudulent activities has been submitted to the competent authorities and now is under police investigation.

We inform you that the other currencies have not been involved.

In order to conduct further verifications, all the activities will be temporarily suspended (including withdrawals and deposits). This procedure is indispensable for users security.

We do offer our full and sincerest apologies to our customers and to whom has been involved into the illegal transfers of Nano occurred on our platform.

Other announcements will be released shortly.

Thank you for your attention.