HomeCryptoAccusations against Nano devs for the BitGrail hack have been rejected

Accusations against Nano devs for the BitGrail hack have been rejected

Last April, New Yorker citizen Alex Brola filed an accusation against the developers of Nano.

Brola purchased $50,000 in XRB tokens in December 2017 through Silver Miller law firm. The charge against the Nano core team was to have broken the laws that regulate securities, selling them in an unregulated way and to have negligently misrepresented the reliability of the Italian exchange BitGrail.

The exchange in question, in fact, had been hacked in February 2018 and had lost 17 million XRBs, which at the time were worth 187 million dollars. In the lawsuit, Brola demanded the implementation of a hard fork so as to “justly compensate the victims”.

The US judge dismissed the case about a month after Brola voluntarily withdrew it.

The rejection notification does not mention the lawsuit, but Peter Scoolidge informed the Law 360 legal news site that the lawsuit was withdrawn “because it was unfounded“.

Before Brola’s decision to withdraw his case, the defendants had requested rejection at the federal court in New York. Their argument was that the tokens were not securities and therefore were not subject to the laws governing them.

In their September rejection request, the Nano developers stated that the token could not be classified as a security because the company had no investors and never received money for its insurance.

The document also states that the value of the cryptocurrency in question “does not come from a group of managers and executives who manage the property of others. Rather, its value derives “from its usefulness and potential utility as a currency”.

Adrian Zmudzinski
Adrian Zmudzinski
Adrian is passionate about technology and Information Technology (IT). Adrian specialized in the analysis of tokens, the blockchain technology, and cryptocurrencies. His interest in Bitcoin dates back to 2009 and it rapidly transformed into a more general interest of the still arising cryptocurrency industry. His analyses are concerned mostly by the technological potential underlying the analyzed token.