One court in Italy has seized the Bitcoin wallets that belonged to the shuttered crypto exchange named BitGrail – as part in the latest company’s bankruptcy proceedings.
BitGrail has wrote a statement yesterday (June 15th) explaining that it had to turn over the Bitcoin wallets on June 5th to the authorities in response to an order from the Tribunal of Florence.
As the statement reads:
“On June 5, 2018, 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.”
According to some news publications and rumors, BitGrail has been shut down since February. It all happened when its founder Francisco “The Bomber” Firano revealed that nearly all of the platform Nano (XRB) reserves which were around 17 million (worth $170 million at the time) had gone missing.
Over the next months, there was much controversy over who was responsible for the missing XRB. The NAno developers argued that a bug in the exchange’s software led to the loss or theft of the funds and accused Firano of ‘stealing’ BitGrail’s insolvency for a long period of time.
“To date, all reliable evidence we have reviewed continues to point to a bug in BitGrail’s exchange software as the reason for the loss of funds,” the Nano Foundation wrote in an April update.
Meanwhile, Firano blamed the development team alleging that the fault was entirely in the Nano protocol and not BitGrail’s software. Even though there were attempts to re-open the BitGrail exchange, the court has seized all of its wallets right now and the exchange is currently moving through preliminary bankruptcy proceedings.
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