The Bit Grail Victims Group (BGVG) released the scans of the court decision on Medium on Jan. 28. The Italian Bankruptcy Court published the sentence on Jan. 21, a BGVG post on the same day explained the court sentence “the court concluded that both Bitgrail and Mr. Firano, personally, be declared bankrupt, authorizing seizures of many of Mr. Firano’s personal assets.”
The court ruling further explains “it was the BitGrail exchange that [because of a software flaw] actually requested to the node multiple times to allow the funds to leave the wallet” and “not the Nano network that allowed the multiple withdrawals. Furthermore, the exchange also reportedly stored all of its Nano cryptocurrency holdings in a “hot wallet,” which compromised its security.
The Hack
According to the ruling, in October of the same year, just three months later another 7.5 million Nano was stolen. Firano converted the central wallet into a cold wallet, in December 2017 and the exchange’s activity became reportedly intermittent. The court was further informed by the prosecutors that Firano deposited a total of 230 Bitcoins (BTC) in his personal account on a cryptocurrency exchange between Feb. 2 and Feb. 5 in 2018. Notably just days before announcing the loss of the stolen assets.
News broke about the hack when Firano allegedly asked Nano developers to alter the ledger by the means of a hard fork to restore the missing funds in February last year.
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