BITGRAIL EXCHANGE – SUFFERS $132 MILLION THEFT

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The exchange BitGrail has lost 17 Million Nano coins on February 8, 2018. And the coins were worth 187 million USD at the time the exchange has managed to discover the theft. The Cryptocurrency was known as RaiBlocks (XRB) before rebranding at the end of January 2018.

The Blame

The Nano has released an update, and the BitGrail wasn’t able to adjust to that. And the exchange has worked with the Nano developers to solve the issue. It was at this time the theft happened.

The exchange could not identify the theft sooner due to timestamp manipulation, i.e., showing wrong times for the transactions.

Firano, the CEO of BitGrail, at first, pinned the blame on the Nano development team, saying that the fraud was due to double spending problem associated with the code.

But the development team responded sharply and said there was no problem with the blockchain. And the exchange was solely responsible for the lost funds.

Later, Firano had asked the Nano team to plan a hard fork for the blockchain at a point before the theft happened so that it would help the exchange to retrieve back the funds.

The development team denied the request and said there was no issue with the blockchain. And the Firano must take the responsibility of the issue entirely.

The BitGrail Stories

Some stories are floating around which aren’t one hundred percent confirmed. And they can’t be dismissed either.

One such is, the exchange has been struggling to release the user funds since late last year. And many accused the exchange a scam.

Also, the exchange was moving the funds to other exchanges when it suspended user withdrawals. Moreover, some think that the funds were not stolen from the exchange hot wallet. Instead, it was from a cold storage wallet, which the BitGrail failed to secure.

Conclusion

Whatever the security risks, thefts, and scam are, it is best to trade on well-established Cryptocurrency exchanges. And even you do so; there is no guarantee your funds are still secure though. If you’re using a highly reputed exchange platform, you might at least get partial compensation for the losses.