The Italy-based cryptocurrency exchange BitGrail, has been hacked more than a month ago. 17 Million Nano (XRB) have been stolen (ex RaiBlocks). At the time of the hack, the equivalent amount of dollars was $195 million. Since then, BitGrail has been working with Nano and local authorities to find a solution to the problem. How to refund investors? Apparently, the solution may be to issue a token.

BitGrail Refunds Investors… With a Token?

If you have been affected by this hack, or you are just following the news, BitGrail is thinking about refunding investors by issuing a token.

According to a press release uploaded to its website, BitGrail says that the company will soon release the details of a cash fund dedicated to NANO owners. At the same time, the cryptocurrency exchange that traded NANO, explains that they are not responsible for the hack. Indeed, they claim that the responsible part is NANO’s team.

BitGrail

BitGrail Logo

The statement reads as follows:

“BitGrail Srl intends to stress having been subject to theft, a crime made possible by taking advantage of faults in the team NANO’s software (rai_node and the official block explorer) and therefore, for these reasons and in accordance with the law, it is not in any way responsible for the situation.”

Additionally, the company wants to issue a token in order to demonstrate ‘good intentions and seriousness of the company.’

“However, as further demonstration of the good intentions and seriousness of the company, in order to meet its users half-way though without recognition of any liability, BitGrail Srl intends, on a voluntary basis, to establish a cash fund (by creating a token) dedicated to the users damaged by the theft. Doing so, they’ll be enabled to recover their stolen funds over time.”

Token Explanation

The token will be called BitGrail Shares (BGS) and it is already present on the wallet page. 15.6 Million of them have been distributed in a 1 to 1 ratio with the stolen NANO. The company explains that users who have been damaged by the theft, can see a 20% updated XRB balance and the remaining part (80%) converted into BGS.

BitGrail explains:

“The new BitGrail Shares token will have its own market on BitGrail’s platform. It will be possible to trade the token, but not deposit it or withdraw it. It is not excluded that the abovementioned token could be converted into an apposite cryptocurrency, thus enabling withdrawal and deposit.”

Apparently, the easiest way to solve the problem is by issuing a token without a clear use, and just done it by force. BGS is not going to succeed without a clear project behind or utility. We hope that the people affected by the hack will be able to recover their funds as it should.

Categories:

Crypto News

Share This