Nano-Theft: BitGrail wants to compensate victims “voluntarily

One month after the million dollar hack, the Italian Exchange BitGrail wants to pay back the lost money to its users. Nano-buyers in particular were affected by the theft. However, the promised compensation has more than one catch.

When it became known on February 10 that 17 million units of the crypto currency Nano (XRB) had been stolen on BitGrail, many wondered whether this would mean the end for the Italian trading centre. The market value of 17 million euros was too high, the stock exchange too small to cope with this loss. It has now become known that BitGrail wants to compensate users affected by the hack. To this end, the team led by Francesco “The Bomber” Firano has created its own token.

In the corresponding accounts, 20 % of the losses are to be transferred in nano immediately, the remaining 80 % are to be replaced in the near future by the new token BitGrail Shares (BGS). At the end of each month, BitGrail intends to use 50% of its profits to repurchase the BGS at a fixed price of $10.50 per share. Alternatively, users can trade the token on their own exchange at the market price.

The news spy: Not our mistake

At the same time BitGrail rejects any responsibility for the news spy. According to her, the vulnerability was Nano’s sole fault. Due to the news spy, a node in the Exchange failed, making double payments possible. The repayments are based on a voluntary basis, exclusively to help those affected.

On the other hand, the company behind Nano (formerly Raiblocks) does not want to know about its own mistake. They accuse BitGrail of not informing them in time about a critical software bug discovered in October 2017 or about the insolvency of their stock exchange. Since February 9, BitGrail has broken off all communication with Nano. The exact details of the hack are still unknown to Nano as they have no insight into the exchange’s system.

Bitcoin secret users have to sign a waiver

Anyone wishing to redeem their compensation in the form of Bitcoin secret must first sign a declaration waiving any legal action against BitGrail: It is questionable whether this will help to gain confidence, especially as the troubled marketplace wants to finance its repayment from future profits.

BitGrail has sent the comments on the compensation in the form of an Italian-language memo to a telegram group of affected parties. “The Bomber” Firano did not agree to the publication, only a summarized translation, which is now online as a Google document. Firano’s entire action could prove to be self-damaging in the end. How the conflict between BitGrail, Nano and those affected will continue will become apparent in the next few weeks.