Italian Cryptocurrency Exchange Bitgrail Hacked. $170 Million Stolen

Italian Cryptocurrency Exchange Bitgrail Hacked. It announced the abduction of cryptocurrency for $170 million and declared itself bankrupt.

Bitgrail hacked

Cryptocurrency exchange Bitgrail reported the hacking and withdrawal of about 17 million Nano tokens, formerly known as Raiblocks. As the Bitgrail representative says, scammers managed to withdraw 17 million Nano coins from the exchange wallet. The indicative rate per coin is $10.

“Bitgrail S.r.l. Informs its users that internal checks revealed unauthorized transactions which led to a 17 million Nano shortfall, an amount forming part of the wallet managed by Bitgrail S.r.l. Today a charge about those fraudulent activities has been submitted to the competent authorities and now is under police investigation.“
Currently, all trading operations on the exchange are suspended. The law enforcement agencies initiated an investigation into the theft of cryptocurrency assets. According to exchange, deposits in other cryptocurrencies are in safe.

Francesco The Bomber

Problems with the Nano tokens withdrawal appeared several days ago. Bitgrail reported a temporary suspension of the withdrawal of assets without specifying the reason for this decision. At the same time, the owner of the stock exchange (Francesco Firano) said in Twitter that the delay is related to technical work on the transfer of assets from a cold address to a hot one.
On February 10, Francesco Firano ( Francesco The Bomber in Twitter) reported that hackers stole Nano tokens. He added that exchange is not able to pay back users at 100%. As he said, exchange only got 4 MLN XRN right now.

Nano team

The Nano team reported in its medium blog that on February 8 Firano contacted them and informed about the hack.
“From our own preliminary investigation, no double spending was detected on the ledger and we have no reason to believe the loss was due to an issue in the Nano protocol. The problems appear to be related to BitGrail’s software”
As evidence they attached a scan of the correspondence of Firano and the developers of Nano.
The Nano team also claimed that Firano proposed to carry out a hard fork to compensate for the losses of BitGrail. Nano team rejected hard fork.

“BitGrail is an independent business and Nano is not responsible for the way Firano or BitGrail conduct their business. We have no visibility into the BitGrail organization, nor do we have control over how they operate. 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”.

Firano applied to the police. He accused the Nano team of publishing a private conversation that could harm the investigation into the theft of Nano tokens.

Coincheck

It’s the second time a cryptocurrency exchange loses a huge amount this year. In the end of January, the largest Japanese exchange, Coincheck have had a hacking attack. As a result, $530 million worth of NEM has left the exchange. After this hacking attack, the Financial Service Agency of Japan (FSA) has stated that it would audit all cryptocurrency exchanges.

According to Wall Street analyst, co-founder of DataTrek Research, Nick Colas, the large-scale hacking of the Coincheck is unlikely to be the last in the industry.
“I think the attack does highlight the fact that the industry still has a long way to go in terms of basic issues of security. This is certainly not the first, nor will it be the last, such hack attack on cryptocurrencies and, all things considered, I think they’re taking it fairly well in terms of price,” said Colas in the telephone interview with CNBC.

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