BitGrail Must Stay Close, Italian Court Says

Decision was made at the request of the law firm, acting on behalf of more than 3000 BitGrail users, who are still trying to recover the stolen funds
24 May 2018   1255

The Italian cryptocurrency exchange BitGrail will not be able to open in the near future, despite the attempts made by its founder, CCN reports.

Court in Florence upheld a preliminary decision to restrict the activities of the exchange, which is currently undergoing bankruptcy proceedings, preventing it from restarting the auction.

The preliminary decision was made at the request of the law firm BonelliErede, acting on behalf of more than 3,000 BitGrail customers, who are still trying to recover the stolen funds from the site. In February, BitGrail reported that it lost about $ 170 million in the Nano crypto currency.

BitGrail operator Francesco Firano blames crypto currency developers who allegedly left a vulnerability in their protocol, which allowed an attacker to withdraw funds from his exchange.

The Nano Foundation in turn stated that they have "reliable evidence" that the hacking was possible because of the bug in the software of the exchange, rather than their cryptocurrency. The organization also created a foundation to help victims of the attack recover the stolen funds.

Firano tried again to launch his exchange on May 2, but was forced to close the site only 3 hours after the opening, because he received the appropriate order of the court.

According to BonelliErede, the court also decided to confiscate the remaining assets of the exchange and appoint a special administration to manage them.

US Crypto Companies to Support TON in Case With SEC

The Blockchain Association said Telegram taken sufficient measures to ensure that the Gram token offer met SEC requirements
23 January 2020   135

The Blockchain Association, which combines companies such as Coinbase, Circle, 0x and Ripple, issued an expert opinion as part of the ongoing proceedings of the US Securities and Exchange Commission (SEC) with Telegram.

Previously, the Digital Commerce Chamber launched a similar initiative. The blockchain association, however, was more straightforward and stated that Telegram had taken sufficient measures to ensure that the Gram token offer met SEC requirements. According to members of the organization, the actions of the SEC can damage not only Telegram, but the market as a whole.

The Court should not block a long-planned, highly anticipated product launch by interfering with a contract between sophisticated private parties. Doing so would needlessly harm the investors that securities laws were designed to protect.


The Blockchain Association

The Blockchain Association notes that for many years it has not been possible for SEC to obtain clear and unambiguous guidance for conducting activities in the cryptocurrency space, while the claims of the regulator make the current situation even more ambiguous. 

The SEC’s lawsuit also raises novel questions regarding whether companies are forbidden from raising funds from sophisticated U.S. investors, under well-established regulatory provisions, to build blockchain networks.


The Blockchain Association

They cite examples of startups TurnKey Jet and Pocketful of Quarters, in respect of which the regulator recommended not to apply legal measures, adding that such litigations inevitably involve high costs and do not guarantee industry participants that they will not be prosecuted in the future.

Telegram discussed its plans with SEC staff for a year and a half, provided copious information and responded to limited feedback by adjusting the design of its transaction. Yet, at the end, the SEC has sued, and the SEC’s briefs thus far say nothing about the substance of those discussions. 


The Blockchain Association

In conclusion, the group asks the court to “reject the SEC’s arguments that the not-yet-in-existence Grams were securities at the time of the Purchase Agreements.”