Italian Crypto Exchange Declares Bitcoins Have Been Seized

Bitcoin Seized Italy

BitGrail, Italian cryptocurrency exchange, declared that bitcoins (BTC) collected in the firm’s wallets have been seized by Italian authorities.

Following a court order by the Tribunal of Florence, authorities removed the funds from the exchange’s wallets on June 5, though did not specify the current worth of the seized assets:

“On June 5, 2018, pursuant to the Tribunal of Florence orders, the bitcoins contained in the company’s wallets were seized and brought under control of the judicial authorities pending further Court decisions in the pre-bankruptcy proceeding.”

Victims of the BitGrail hack filed petitions to the court after the seizure of BitGrail’s BTC, affirming that the exchange is bankrupt under article 6 of Italian bankruptcy law. The petition was filed on behalf of Espen Enger, a BitGrail creditor, whom approximately 3,000 claimants have allegedly contacted so far.

On February, 17 million Nano (XRB, formerly Raiblocks) that was worth $187 million at the time was lost due to a cyber attack at BitGrail. After trading was suspended, CEO Francesco Firano argued that it would be difficult to refund the stolen amount.

Series of arguments between BitGrail and the Nano Foundation was raised after the hacking, and it was unclear whether hackers abused a BitGrail security weakness or a vulnerability in Nano’s blockchain.

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