Silver Miller, a leading cryptocurrency investor law firm in America and the ALM/Daily Business Review’s 2018 Most Innovative Law Practice honoree, revealed it has filed a new class action lawsuit on behalf of investors in Nano f/k/a RaiBlocks (XRB), asserting that Nano and important members of its development team violated federal securities laws.
The statement alleged further that, Nano and team, in their action to introduce XRB to a wide market of investors, thoughtlessly made investors to open accounts and place their assets with an unknown and severely distressed, Italian cryptocurrency exchange, BitGrail, where $170 million of the investors’ XRB allegedly “disappeared” in February 2018.
Whalepool in a tweet, first broke the news of the NANO tokens hack. The hack, according to available information, occurred on the exchange platform, BitGrail, causing a massive loss in fund by unsuspecting users.
In a message to the community on the obscene occurrence, NANO team which attempts to clear its name off the issue, stated that it was informed by Francesco “The Bomber” Firano – owner and operator of the BitGrail exchange, stating further that the team has contacted law enforcement.
“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,” the team stated.
“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.”
In the information provided by NANO team, Firano demanded that NANO modify its ledger in order to cover his losses, but the team said that was impossible.
For now, there is no official statement from NANO team on the charges brought against it.
Meanwhile, going by the lawsuit, the plaintiff, Alex Brola, complains that Nano and its core team “engaged in an unregistered offering and sale of securities that violated federal securities laws, including Sections 5, 12(a), and 15 of the Securities Act of 1933, and wrongly ushered investors to BitGrail. The Lawsuit pleads that the Court rescind the plaintiff class’ investments in XRB and require Nano to “rescue fork” the allegedly missing XRB into a new cryptocurrency in a manner that would fairly compensate the class of victims”.