BitGrail cryptocurrency exchange returns, immediately shuts down

Posted: 3 May 2018 3:55 pm
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The Nano-BitGrail incident has taken another twist, bringing more clarity to affected Nano holders.

BitGrail came back to life on 2 May, but only very briefly before a three-judge panel in Florence, Italy, ordered it to close again.

"The order is to have immediate effect, with possible criminal sanctions if violated. The court will hear the arguments of both sides before making a final decision on the possible bankruptcy of BitGrail. In the meantime, trustees have been appointed to secure BitGrail's assets," the order reads.

The order also says that the re-opening of BitGrail involves "the concrete danger of depletion of the assets of the bankruptcy and possible dispersion of the means of proof for ascertaining the causes and responsibility at the base of the Nano losses," which may not do BitGrail any favours in the ensuing court battle.

The BitGrail wallet
saw a lot of activity in its brief time up, with millions of dollars' worth of cryptocurrency moving in and out. It's not clear whose money that was though, and whether it was hopeful traders returning to the platform or something more unusual.

Whatever might be going on behind the scenes, the reopening and near-immediate court order might be good news for Nano traders who lost coins in the BitGrail incident, bringing a bit more clarity to the situation. The order seems to slap BitGrail on the wrist and assert that the court will be hearing both sides of the argument before making a decision on the bankruptcy, which effectively closes one of the three doors BitGrail-Nano victims had open.

The first door, which seems to have just been slammed shut, was to come back to BitGrail and take up its offer for attempted compensation.

The two remaining options involve picking a side in the class action lawsuits that have emerged from the incident.

No blame for the loss has been officially ascribed to any party yet, so it's all still up in the air. The most popular opinion is probably that a failure to follow appropriate technical procedures on BitGrail's end opened a vulnerability which resulted in the theft.

The most compelling path for Nano holders who lost funds in the BitGrail attack might be to sign up with the anti-BitGrail lawsuit party.

Disclosure: At the time of writing, the author holds ETH, IOTA, ICX, VEN, XLM, BTC and NANO.

Disclaimer: This information should not be interpreted as an endorsement of cryptocurrency or any specific provider, service or offering. It is not a recommendation to trade. Cryptocurrencies are speculative, complex and involve significant risks – they are highly volatile and sensitive to secondary activity. Performance is unpredictable and past performance is no guarantee of future performance. Consider your own circumstances, and obtain your own advice, before relying on this information. You should also verify the nature of any product or service (including its legal status and relevant regulatory requirements) and consult the relevant Regulators' websites before making any decision. Finder, or the author, may have holdings in the cryptocurrencies discussed.

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