NANO and Its Core Members Served With Another Lawsuit Due to the BitGrail Hack

NANO and Its Core Members Served With Another Lawsuit Due to the BitGrail Hack 1

News reaching Ethereum World News indicate that the Nano (NANO) Cryptocurrency project and its core members have been served with another lawsuit linked to the BitGrail Hack that happened in early February 2018. With approximately $180 Million lost during the hack, the new class action suit alleges that NANO and its core members violated federal securities laws and encouraged investors to open accounts with the Italian exchange known as BitGrail.

Filed on the 3rd of this month by James Fabian individually and on behalf of all other affected investors, the lawsuit names Francesco Firano, Colin Lemahieu, Mica Busch, Zach Shapiro, Troy Retzer, the NANO Project and BitGrail as defendants of the case. It has been filed in the District Court of Northern California.

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Lawsuit Recommends Forking NANO to Compensate Lost Coins

The lawsuit goes on to request that NANO and its core developers issue a ‘rescue fork’ to compensate those affected by the hack. It states

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, which Defendants would do by “rescue forking” and returning the stolen digital assets.

Failure to Investigate Whether BitGrail Was Secure

The lawsuit also points out that the team at NANO recommended investors to store their digital assets on BitGrail without doing their due diligence as to whether it was secure or not.

Notwithstanding Defendants’ widespread promotion of BitGrail as a safe haven for XRB investors, BitGrail’s troubled past, uncertain present, and questionable future make Defendants’ recommendations highly suspect, if not outright reckless.

In early – January 2018, many BitGrail users reportedly experienced problems with the reliability and security of BitGrail’s trading platform. BitGrail account-holders took to social media to decry the lack of reliability and trustworthiness of BitGrail’s operations or the reliability of the XRB code itself.

Despite the account glitches and functionality concerns that affected so many BitGrail users, the Nano Defendants did not distance themselves from the BitGrail Defendants as a direct result of the problems.

NANO Developers Had Been Cleared From the First Lawsuit

The first lawsuit against NANO due to the BitGrail hack was filed in the Eastern District Court of New York. The plaintiff, Alex Brola, also claimed that the NANO development team induced investors to buy the digital asset ahead of the hack. It also added that the team had carried out an unregistered securities offering. Brola had also requested that the development team issue a recovery fork. However, the case was dismissed by the court in October of last year.

What are your thoughts on the new lawsuit against the NANO project and its team? Will the second lawsuit be successful? Is hard-forking a solution to compensate lost digital assets? Please let us know in the comment section below. 

Disclaimer: This article is not meant to give financial advice. Any additional opinion herein is purely the author’s and does not represent the opinion of Ethereum World News or any of its other writers. Please carry out your own research before investing in any of the numerous cryptocurrencies available. Thank you.

NANO and Its Core Members Served With Another Lawsuit Due to the BitGrail Hack 2
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CryptoCurrencyUSDChange 1hChange 24hChange 7d
Bitcoin44,172 1.01 % 4.53 % 8.33 %
Ethereum3,122.3 1.36 % 8.64 % 13.17 %
Cardano2.270 1.01 % 10.75 % 8.95 %
Tether0.9986 0.03 % 0.08 % 0.23 %
Binance Coin380.14 0.83 % 7.43 % 11.58 %
XRP1.010 1.65 % 12.10 % 9.44 %
Solana149.20 1.58 % 14.08 % 5.92 %
Polkadot30.87 2.19 % 17.29 % 10.73 %
USD Coin1.000 0.23 % 0.33 % 0.23 %
Dogecoin0.2258 0.20 % 9.72 % 8.70 %

bitcoin
Bitcoin (BTC) $ 43,746.00
ethereum
Ethereum (ETH) $ 3,078.74
cardano
Cardano (ADA) $ 2.24
tether
Tether (USDT) $ 0.999778
binance-coin
Binance Coin (BNB) $ 376.93
xrp
XRP (XRP) $ 1.00
solana
Solana (SOL) $ 146.94
polkadot
Polkadot (DOT) $ 31.31
usd-coin
USD Coin (USDC) $ 0.999988
dogecoin
Dogecoin (DOGE) $ 0.224377