First Ever Asset Class Law Suit For Restoring Coins Robbed On Bitgrail

by Pushpa Naresh

Nano digital assets were in the eye of yet another storm, as investors in this prolifically-traded coin have sought amends for a year-old crypto crime on crypto exchange Bitgrail, by filing a lawsuit pointing fingers at Francesco Firano, Bitgrail as well as Nano itself.

Bitgrail was the default exchange for users of Nano coins, which was formerly called as RaiBlockx(XRB) when a hacking event saw the exchange lose as much $170 million in XRB tokens. Bitgrail was the hot favorite as it was the only exchange at that time to offer higher liquidity than all other platforms.

However, the attack brought about the end of that high liquidity and investors were quick to move away from the beleaguered exchange and headed to the current largest cryptocurrency exchange in the world – Binance. Today the highest number of Nano tokens are traded on this exchange.

This backdrop comes after the latest Nano media report that a second lawsuit has been raised by affected investors against all of the stakeholders of the earlier XRB. The contention in the lawsuit is raised to question the lack of action taken by the developers in order to retrieve the stolen coins, even though there was a technical option which could have essentially got back the hacked asset.

The lawsuit cites that there is provision for the coders or developers to simply rewrite XRB code so as to allow a fork.

A “Fork” is a typical developer action done at frequent intervals, just like the Bitcoin fork in November last, in order to reconcile several development factors. A Fork is a series of code which allows the next level of blockchain to evolve.

In the case of XRB code, a programmed fork would allow the owners from whom the asset was robbed to regain ownership. The defendants, in this case, are developers, project promoters and other stakeholders, while the plaintiffs are investors who lost their funds to hackers.

At the same time, it needs to be noted that the current lawsuit is filed by citizens belonging to the US. Therefore, affected investors who are from other countries will have to pursue their cases in a similar lawsuit, under current conditions. It is yet to be clarified, with regard to understanding regulatory agencies will have with the United States regulatory body SEC.

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