The amount was kept in the form of Nano tokens, a little known virtual coin, formerly called RaiBlocks.
The message on the BitGrail website announces the discovery of fraudulent transactions, the disappearance of the $ 170 million equivalent of customer deposits being reported to the authorities. BitGrail has suspended all trading transactions "to conduct additional checks", but without giving a precise deadline for resuming activities
Even more tense, the founder and owner of BitGrail announced in a Twitter message that there is no way to fully refund the missing amounts from user accounts
Cracked in the Nano Core Team, developers behind the Nano crypt-coin say that the reported losses are not caused by a problem with the trading protocol. They claim a vulnerability in the software used by BitGrail and claim pressure exerted by Francesco Firano for to cover the losses by issuing new cryptomonas .
Like other currency exchange specialists, BitGrail has recently imposed identity validation rules for accepting withdrawals that exceeded some amounts, the cumbersome procedure generating a long waiting list, extended until December. Moreover, the company announced the restriction of operations to customers in the European Union, making this decision to the complications caused by the European legislation
In the shadow of the scandal, Nano Core Team representatives question the company's solvency and accuse BitGrail of misinforming their users for a long time
Although the amounts reported as lost are much lower than the latest incident of this type reported at the Japanese Coincheck exchange (between $ 400 and $ 534 million), the absence of a plan to compensate injured customers and the lack of transparency of their owners to put BitGrail on the short list of the biggest virtual currency frauds in Europe