BitGrail lost $ 170 million in Nano cryptocurrency …

BitGrail Exchange Lost $ 170 Million In Nano Cryptocurrency And Declares Insolvency

The Italian cryptocurrency exchange BitGrail on Friday announced that 17 million Nano tokens (formerly RaiBlocks) for a total of about $ 170 million were lost from its wallet.

According to the information on the exchange’s website, “As a result of an internal audit, an unauthorized transaction was discovered, which led to a deficit of 17 million Nano on the wallet managed by BitGrail.” The exchange does not specify exactly when this transaction was carried out.

Representatives of the company reported the incident to the authorities, clarifying that they have no reason to believe that funds stored in other cryptocurrencies could be affected. At the same time, the ability to deposit / withdraw all digital currencies presented on BitGrail was temporarily limited..

Twitter user Francesco The Bomber, presumably the owner of BitGrail, commented on the situation: “We are transparent, we stole the money,” adding that they will not be able to compensate the losses of users in full..

“Unfortunately, we cannot pay you 100%. We only have 4 million XRB left, ”he writes, thus effectively recognizing the insolvency of BitGrail.

BitGrail lost $ 170 million in Nano cryptocurrency ...

Representatives of Nano, in turn, said that the hack was due to the fault of the exchange, and not because of the problems of the cryptocurrency protocol, which, however, did not prevent its rate from falling by 9% over the past day..

Nano noted that they only became aware of the incident on February 8. However, they have reason to believe that the management of the exchange knew about the problem long before yesterday’s announcement and deliberately misled the community..

As a reminder, this is not the first time BitGrail and RaiBlocks appear in the same news due to obscure events. So, at the beginning of last week, the RaiBlocks rate fell by 27% after BitGrail announced that it would soon stop serving non-European users, at that moment referring to the requirements of regulators and not reporting other problems..