Just two months into the year and already the crypto world is seeing another exchange suffer a massive loss. This time it was an Italian exchange called BitGrail that took the hit. They reportedly lost $170 million in Nano tokens. Nano tokens (formerly known as Raiblocks) isn’t widely known, but is a cryptocurrency slowly growing in popularity. This blow comes only weeks after a Tokyo-based exchange called CoinCheck was robbed of $500 million.
BitGrail owner and head operator, Francesco “The Bomber” Firano reached out to Nano to inform then about funds stolen from the BitGrail wallets and moved into foreign wallets. He further stated that they should alter the ledger and fork the Nano blockchain in an attempt to restore the funds. The Nano team rejected this notion and further stated that it was something they’d never pursue as BitGrail is a privately owned business and that they are not responsible for how Firano conducts business.
This time the problems may not lie with flawed protocol, but more with flimsy software. Nano has confirmed this via their own investigations. Community and Public Relations head Troy Retzer went on to state, “From our own preliminary investigation, no double spending was detected on the ledger and we have no reason to believe the loss was due to an issue in the Nano protocol. The problems appear to be related to BitGrail’s software. We do not have an answer yet on if it was a hack, at this point, we only know the information that BitGrail has given us,”
Suspicious behavior within the exchange and a leaked conversation that linked Firano to the stolen Nano and shows that he put in a request to fork the chain has turned heads. This video had further led the Nano team to believe that the issue had to do with BitGrail having a long standing issue with bankruptcy. In a tweet posted by Firano, he denied this and fired shots at the Nano team. “NANO on BitGrail have been stolen. Unfortunately there is no way to give it back to you at 100% (we only got 4 MLN XRN right now).The devs, as you have guessed, don’t want to collaborate.
Since the news of hacks and bankruptcy broke, the Nano has suffered significantly. The price of Nano has dwindled down from $11.78 to $9.12. There is no doubt that their prices will continue on a downward spiral until the investigation is wrapped up.