Bitcoin Assets Seized From Crypto Exchange BitGrail By Italian Authorities

News | June 18, 2018 By:

The Tribunal of Florence, an Italian court, has seized all the bitcoins that were stored in the wallets of crypto exchange BitGrail.

In February of this year, BitGrail reported that hackers have penetrated its security and made off with 17 million units of digital currency Nano (XRB), which was formerly known as RaiBlocks. The stolen coins was estimated to be worth roughly $170 million at that time.

The hack caused a series of arguments between BitGrail and the Nano Foundation. BitGrail CEO Francesco Firano blamed the Nano development team for their failure to secure the token. For its part, the foundation argued that a bug in the exchange’s software had led to the loss or theft of the funds and accused Firano of concealing BitGrail’s insolvency for an extended period of time.

Last month, Bitgrail attempted to re-open its exchange, but was forced to shut down three hours later at the order of the court of Florence. The court ordered an immediate closure of the exchange in accordance with a request made by Bonelli law office on behalf of a client.

“Even though we don’t agree with this decision, we are obliged to respect the law and to suspend any BitGrail business immediately,” Bitgrail said at the time.

In its blog post published on June 15, Bitgrail said that authorities removed the funds from the exchange’s wallets as part of standard pre-bankruptcy proceedings.

“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 pre-bankruptcy proceeding,” Bitgrail said.