Bitgrail Hacked! - 17M Nano (XRB) Lost - Raiblocks

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#1

Looks like Bitgrail have been hacked and lost 17M Nano

Latest here:

On February 8th, 2018, the Nano Core team was informed by Francesco “The Bomber” Firano — owner and operator of the BitGrail exchange — of a loss from the BitGrail wallet. Our team promptly contacted law enforcement and we are fully cooperating with law enforcement on this matter.

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.

We had no knowledge of BitGrail’s insolvency prior to February 8th.

In our conversation yesterday (which you can find attached here, this link has been edited to redact a private email.), Firano informed us of missing funds from BitGrail’s wallet. An option suggested by Firano was to modify the ledger in order to cover his losses — which is not possible, nor is it a direction we would ever pursue.

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.

We will not be responding to individual posts or accusations by Firano regarding this situation. We are preparing all information we have on the matter such as blockchain entries, screenshots, and chat logs and presenting them to law enforcement.

Please refer to our Twitter account @nanocurrency for future links to official statements.

Thank you,
The Nano Core Team

via:


#2

I was just reading about this reminds us all about the importance of actually owning the private keys and not trusting these exchanges to hold them.


#3

In events like this, wondering if coin platforms are able to destroy coins held in addresses of confirmed stolen…its an idea that could afford some debate.


#4

I understand wanting to help people who lose everything but to do this brings us to a more centralized system.


#5

I don’t think they were hacked the owner francobomber guy was conducting fraudulent transactions. On their website:

https://bitgrail.com/news


#6

FFS.
I had a huge fund there. I was keep withdrawing little by little because of their withrdraw limit. and have been waiting for a verification for over 2 months.

It is really time for decentralized exchanges.

edit: might not be huge to some whales. but it was huge to me


#7

Unfortunately most if not all ill-gotten NANO was already exchanged for Monero months ago.


#8

get yer self over to barterdex…


#9

Don’t keep your funds on the exchanges fellas. Only keep enough on there to trade with and then transfer everything to your hard wallets. Trust no one with your crypto.


#10

Not forgetting all the KYC he has recieved, that in itself is very worrying…I think this fella is probably going to be looking over his shoulder for a long, long time, I certainly wouldnt want to be related or mates wih him…:thinking:


#11

Another likely inside job.


#12

It is starting to look that way…the trail seems to lead back to bitgrail…:thinking:


#13

Is this a good time to pickup NANO considering all the FUD around it or it this a dead coin now?


#14

I am not familiar with nano aka railblocks. But I can tell you this.
Don’t leave any crypto on any exchange. Go in, trade and out in 15 minutes!
This isn’t related to Railblocks. It is about the exchange.
This happened multiple times. People’s bitcoin stolen from exchanges in the past several times.

Download the wallet from original coin’s website or github repo(nano in this case) and use that.


#15

Wow. Private keys. Nano ledgers. Trezors. Only way to keep it safe. If we want to be decentralized it comes with responsibility. If you like security and paying a 3rd party for it you also have to realize things like this will happen in the unregulated crypto space.

Quick thought though. If 17M out of 133M “disappeared” why would price drop 25% in last 24 hours?

I would think Nano “if truly their code wasn’t at fault” just increased in value by 10% if they are lost, if not lost value shouldn’t drop.

This is exactly why charting beyond 24 hours isn’t necessary IMO as clearly the FUD and media around the hack is affecting the price negatively just because Bitgrail lost or stole Nano it shouldn’t affect price unless they are dumping it onto the market.

Would love to hear some thoughts on this!


#16

Wondering the same. We have seen it make great runs in past 60 days. Makes no sense that is discounted when it just potentially lost 8% of its inventory supply and demand say wait for it to stabilize to make sure those 17M arent getting dumped and scoop some up.


#17

Is there something to back this up? I guess if you run an exchange you can swap whatever you want like the Fed Reserve. So depressing that blockchain exchanges aren’t in place with community oversight. I guess @peter is working on this already lol


#18

It is FUD.
First wave - Some people think it is hacked and start to dump their coins.
Second wave - Some people see that it is hacked and the price is dropping - they start selling.
Third wave - Some people see the price drop significantly and they start panic selling which tanks the price further.
There are other exchanges nano is trading…


#19

So the coins that “disappered”, I wonder if they could/would consider it “burned” ?


#20

I don’t think they “disappeared” per say they are offline and probably in a wallet that isnt on the actual exchange. They may have been exchanging it for other coins on other platforms and trying to turn profits. I cant see someone just hodling it that is associated with Bitgrail. They got caught not having the funds sort of like a run on the bank people probably tried to transfer to Binance and they didnt have supply. Thats my thought could be wrong.