BitGrail to reopen, compensate stolen Nano. Maybe. Conditions apply
Come for the Nano, stay for the terrifying prospect of BitGrail Share tokens.
Cryptocurrencies are often criticised for lacking intrinsic value, and not being backed by any reliable authority. Speaking of which, the BitGrail exchange will be re-opening and offering BitGrail Shares tokens.
Italy-based exchange BitGrail was best known as the world's number one place to trade Nano (formerly known as RaiBlocks), right up until it suddenly became best known as the exchange which lost $170 million worth of Nano unnecessarily, tried to cover it up and blame the token, attempted to cajole Nano developers into forking the network to cover BitGrail and then declared bankruptcy.
Anyway BitGrail's back! And it has a special offer for the customers who lost Nano in the attack.
An offer you can't refuse
BitGrail didn't lose all of its Nano. Just most of it.
So once BitGrail gets back up and running, previously-affected users can create an account and get 100% of their lost Nano balance restored.
Of that 100%, precisely 20.3466% will be in Nano, while the remaining 79.6534% will be in BitGrail Shares (BGS).
BGS will be tradeable on BitGrail, but not deposited nor withdrawn. On the first day of each month, BitGrail will use 50% of the previous month's trading fees to proportionally buy back BGS tokens from its users.
The buyback will be made at a fixed price of US$10.5 per token, paid in bitcoin. If any of the lost Nano is recovered it will be distributed to BGS token holders.
What's the catch?
Other than the obvious downsides, like being a BitGrail customer, the main catch is that affected customers can only enter into this arrangement if they expressly agree that BitGrail was not responsible for the loss and waive any kind of legal action against the exchange.
Not that it was responsible anyway, BitGrail maintains in an extremely carefully worded statement.
"BitGrail once again confirms that it was the victim of a theft, which took advantage of malfunctions of the software made available by the NANO team."
It's just doing this to demonstrate its good faith and the seriousness of the BitGrail company, the announcement says, and asking customers to waive any right to legal action should in no way suggest that there might be any grounds for legal action in the first place.
This offer might put BitGrail customers in a tough spot. The BGS tokens which make up the bulk of the compensation are of dubious value, and with BitGrail's reputation affecting its ability to get new customers, it seems unlikely that there's going to be much buying-back going on. But for someone who lost big time, getting even 20% back right away shouldn't be sniffed at.
The catch poses an issue though. Someone might prefer to aim for clearer compensation in court, but any resolution there would still be a long way off, and any resulting compensation just as dubious as those BitGrail Shares.
It might be tough to swallow, but for someone who wants to recover their losses to the greatest extent possible, this might be an offer they can't refuse.
Disclosure: At the time of writing the author holds ETH, IOTA, ICX, VEN, XLM, SALT, BTC, NANO
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