Bitgrail refunds hacked users stolen 170 million US dollars through the creation and issuance of BGS tokens.
The cryptocurrency exchange has not pleaded guilty to hacking 17 million Nano tokens from its users. Nevertheless it has agreed to compensate for the damage. But it will happen only if users sign an agreement to waive their claims.
The Refund Plan
Bitgrail published press-release on its website. It states:
“When the site is reopened, the use of the platform for the victims of the theft will be bound by the signature of a settlement agreement. The latter will be characterised by an expressed renouncement from the users to every type of legal action. It will have to be formalized through the compilation of a form.
This waiver will allow users to enter the effective availability of the BGS tokens. The subjects who won’t accept the settlement agreement will have no alternative except for the account termination in compliance with the TOS (terms of services)”.
Bitgrail is not going to take responsibility for hacking the security system. The company claims that the blames lie with the Nano software. The press release also stressed that at the moment the incident is under investigation investigation to prove Bitgrail’s innocence, as well as the fact that the company was the victim of the attack.
The exchange plans to refund hacked users using its own token – Bitgrail Shares (BGS). According to exchange announcement, it will refund 20% in XRB, and 80% – in BGS.
Clients can use BGS tokens exclusively within the BitGrail cryptocurrency exchange. The company noted that the clients of the exchange will get the opportunity to exchange their BGS tokens to any other cryptocurrency. But this will happen only when the situation in the cryptocurrency market will help to reach the desired BGS price. Thus, the circulation of BGS tokens will be limited by using only at the BitGrail exchange for an indefinite time.
Before the BitGrail hack, some other exchanges, including Binance, listed Nano.
After the $195-million theft, a lot of Nano investors believed the company should take responsibility for cooperating with a shady cryptocurrency exchange.
Nano published 2 Medium posts, explaining its point of view and refused to accept responsibility for the stolen funds. Instead, it stressed that the issues appear to be related to BitGrail’s software.
“We now have sufficient reason to believe that Firano has been misleading the Nano Core Team and the community regarding the solvency of the BitGrail exchange for a significant period of time,” the company added, suggesting Firano might have deliberately misled Nano and its investors for personal gains.
“BitGrail is an independent business and Nano is not responsible for the way Firano or BitGrail conduct their business,” the company continued. “We have no visibility into the BitGrail organization, nor do we have control over how they operate.”
In addition, Bitgrail stored XRB in a “hot” wallet, which is vulnerable to hacking and cyber attacks.