BitGrail Bitcoin Wallets Seized by Italian Court

BitGrail Bitcoin wallets seized by Italian court as part of the procedures preceding the bankruptcy.
The Italian cryptocurrency exchange BitGrail announced that the bitcoins stored on its wallets were confiscated by local authorities. Information about this was posted on the company’s website.

BitGrail Bitcoin Wallets Seized by Italian Court

The statement said that the authorities withdrew money from the wallets of the exchange in accordance with the order of the court on June 5. The amount of seized assets is undisclosed. The funds will remain under the control of the judiciary until the following decisions are taken as part of its bankruptcy proceedings.

The official announcement on the website states:
“On June 5, 2018, pursuant to the Tribunal of Florence orders, the Bitcoins contained in the company’s wallets were seized and brought under control of the judicial authorities pending further Court decisions in the prebankruptcy proceeding”.

Bitcoin assets owned by BitGrail were arrested in accordance with the demand of former exchange customers who were victims of hacking. They argue that the company must be declared bankrupt. The petition was filed on behalf of BitGrail’s creditor Espen Enger, who represents the interests of more than 3,000 claimants.

In February, BitGrail exchaтge suffered a cyber attack and lost 17 million Nano (XRB, previously Raiblocks). At the time of the hack, the value of assets was $ 187 million. After the trade suspensions, Bitgrail CEO, Francesco Firano stated that it is impossible to recover the stolen amount.

The situation led to serious disagreements between the management of the exchange and the developers of Nano. It is still unknown whether the hackers used the vulnerability of the security system of the exchange or a particular cryptocurrency.

On May 3, BitGrail reopened, but three hours later it stopped working. The court decided to immediately suspend the trading in accordance with the request of the Bonelli Law Office on behalf of the client.

Previous Hacks

Other considerable hacks took place during this year. It negatively impacted the cryptocurrency market. In end of January Coincheck exchange was hacked and NEM tokens were stolen. One of the latest attack happened to Coinrail exchange in June. The exchange lost almost $40 million in cryptocurrencies.

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