The Italian authorities have found the founder of Bitgrail responsible for hacking fraudulent activities in 2018 that resulted in a loss of $ 150 million.
Francesco Verano, the sole director of the Bitgrail cryptocurrency exchange, is accused of seizing clients’ funds before reporting the theft of the cryptocurrency from the exchange.
Verano has kept the platform intact for several months, according to a December 21 and 21 statement from the Postal and Telecommunications Police – the cybercrime unit of Italy’s state police – despite revealing a major security breach related to the nano-cryptocurrency:
“To keep the platform open despite the fact that illegal seizures of nano-coins were detected and the Nano team was not informed […] FF continued to attract new users, which grew from 70,000 to 217,000 in a few months and are using bad reputation. Becoming the first and only Italian stock exchange to do business with [Nano]. ”
Verano later denied the police statement, saying the authorities had provided false information on the case. “Instead of correcting the articles, the postal police hid them,” Verano said on Twitter. “The management also indicated that the police did not arrest him.”
The announcement seems to indicate that Firano pulled out 230 bitcoins (BTC) worth € 1.7 million, or about $ 1.9 million, at the time, just three days before it reported a major theft of the Nano. in the previous months. BTC has been tracked in Firano’s personal account on the exchange platform The Rock Trading. Despite the fact that the authorities pointed to attempts to transfer funds, most of the funds remained in the company’s accounts. The authorities said the attackers who stole the nanoparticles are still unknown. According to the preliminary injunction, Verano was prohibited from holding administrative positions or engaging in commercial activities, but his freedom of movement was not otherwise restricted.
The latest news comes after years of controversy over the Bitgrail hack, one of the largest hacking incidents in Italy. In February 2018, Verano officially announced that 17 million nanoscale sizes, formerly known as Raiblocks, had been stolen in a hack. The Nano developers then made an official comment, explaining that Verano requested a change in the ledger the day after the hack was reported.
In January 2018, an Italian bankruptcy court ruled that Verano should return as many assets to his clients as possible after local authorities confiscated more than $ 1 million in personal assets.