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Francesco Firano Declared Bankrupt by Court and his Assets Seized

On the 28th of January 2018, the victims of the BitGrail exchange had a sigh of relief after the Italian bankruptcy declared Francesco Firano Bitgrail owner bankrupt and assigned trustees to seize assets. Mr. Francesco Firano and the BitGrail as a whole are held responsible for the hacking incidence that led to a loss of 17 million NANO which equates to 170 million USD.

At the time news of the ruling made by the Italian bankruptcy court hit the public domain, the court’s trustee had $1million worth of assets in their possession. Besides getting their hands on Firano’s assets, the trustees also had millions of dollars’ worth of virtual currency from Bitgrail exchange. Among personal items seized is Mr. Firano’s car. To arrive at this moment, the court found out that Mr. Firano and BitGrail negligence led to the loss hence the court made the ruling to seize assets to pay the victims. The court decision was published on January 21st, but the victims further published the court’s decision on Medium on the 28th of January. BitGrail Victims Group (BGVG) is a group dedicated to getting justice for investors.

Funds Stolen

According to files filed in court, the exchange lost 2.5 million Nano in July 2017 and later on lost another amount in October 2017. Furthermore according to the court files Mr. Firano was in the loop of the first incidence. Mr. Firano, later on, twitted that the accounts involved in the hacking incidence where blacklisted. In the October 2017 hack, 7.5 million worth of Nano was stolen. Apart from the above, the courts found out that the BitGrail exchange should be held responsible for the hacking incidence due to the security faults in its system. The platform had a software flaw which allowed initiation of multiple requests for withdrawals leading to the loss. In its findings, the latter actions show BitGrail software flaw led to the loss and not Nano’s platform.

For Firano his actions of making the central wallet into a cold wallet in December 2017 was wrong. Furthermore, the court also found out that between February 2 and 5 Mr. Firano was busy making deposits into his account a few days before news of the hack hit the public domain. In the end, his account had 230 Bitcoins. Besides the above, the actions of Firano and BitGrail developers to perform a hard fork to get back the funds shows they were aware of the situation.