Italian Cryptocurrency Exchange BitGrail Reports $170 Million Nano Tokens Lose

604

BitGrail, an Italian-based cryptocurrency exchange announced recently that it had lost about 17 million tokens of the Nano cryptocurrency worth approximately $170 million due to fraudulent transactions, according to the Wall Street Journal. The company’s website stated that the internal checks have revealed that there was some unauthorized transactions that could have led to a shortfall of 17 million Nano currency that form part of the wallet managed by BitGrail.

Last week, the BitGrial founder Francesco Firano discovered that about 17 million Nano tokens, worth about $195 million of customers’ cryptocurrencies by then had been stoken by hackers. The company has informed relevant authorities and the investigation is going on. BitGrail also confirmed that other currencies it holds are not yet affected and it’s in the process of temporarily suspending all the withdrawals and deposits for most of its virtual currencies so as to verify their authenticity.

BitGrail is one of the largest exchanges globally that allows the investors to trade in bitcoin and other cryptocurrencies including the Nano. It was until recently one of the major exchange that trade in Nano tokens formerly known as RaiBlocks. However, the claim has been greeted with a lot of skepticism from the investors fueled by recent suspicious moves by the exchange.

In January this year, the company halted all the deposits and withdrawals of Nano, Lisk, and CryptoForecast tokens. The move was followed by the enforcement of identity verification and anti-money laundering protocols for the users as well as the potential block on the non-European users despite the firm not dealing with government currencies or financial institutions.

According to one of the leading cryptocurrency news sites, The Merkle, most of the users had already suspected the weird activities of the exchange and it was heading to the so-called ‘exit scam’ since the price of Nano dropped by 20%.

A similar incidence was announced earlier in the year when Japan Coincheck exchange reported a loss of more than $534 million in the cryptocurrency. Although Coincheck promised to reimburse its affected users, BitGrail has stated that it would be difficult to fully refund the affected clients.