Altcoin Nano Slapped With Another Lawsuit Over $170mln BitGrail Hack
For the Nano Altcoin, 2019 starts on a sour note. The developers will face a class action lawsuit on the BitGrail security breach for the second time. In accordance with the law360 news outlet, the prosecution was referred to Francesco Firano, Nano cryptocurrency, Bitgrail and at least four other persons on Thursday, 3 January, in the California Federal Tribunal.
The documents in suit include accusations of fraud and infringement of the Securities Act alleging misleading investors from the defendants. The cryptocurrency, which once traded for over $50, is now worth merely about $1.
The last time Firano was reported addressing the BitGrail debacle was on 16 June 2018 when he noted on Twitter that he had not been able to retrieve the BitGrail deposits in addition to reporting that they had requested follow- up on the legal proceedings pledged by the parties involved. Firano also urged those who contacted him to stop doing so because he could not help them.
The new lawsuit concentrates on Nano developers’ activities and on the first lawsuit revoked last year. One plaintiff named Alex Brola alleges that he has invested more than $50,000 in Nano and seen his investment increase to over $237,000 before it became zero because of the Bitgrail hacking event.
The news outlet of Law360 indicates that the plaintiffs, if they prove their case and demonstrate that Nano acts illegally, are more likely to win the suit.
“Being a registered or unregistered security is like the difference between hitting someone with and without car insurance. In the latter case, you are 100% liable. In the former, your insurance may absorb some or all of your responsibility.”
After the hack over 80% of the company’s crypto tokens have been lost, the Italian government keeps everything left of the BitGrail funds. The new lawsuit represents the investors in America alone, and it is likely that if it ends in a positive note, it will open up an avalanche of similar lawsuits by international investors who have suffered a similar fate, because they will have something to do with their investors.
“Defendants still own and control millions if not tens of millions of XRB and do not want to sacrifice any financial advantage they currently hold over the average XRB investor victimized by the XRB disappearance at BitGrail.”