- The Italian police have accused the chief of BitGrail of Nano tokens hack
- Around 2,30,000 users of Nano exchange are the victim of a digital fraud of 120 million euros
- The suspect of the fraudulent activity is a 34 years an aged resident of Florence
- It is not yet confirmed whether BitGrail was actively involved in the hack or have knowingly ignored the security flaws
The Postal Police of Florence and the Financial Cybercrime Section of the Central Postal Service in Rome, has recently accused an Italian firm BitGrail, that manages a crypto exchange platform for a digital fraud of 120 million euros ($146 million). The agency has taken the help of the staff of the Guardia di Finanza of the Judicial Police Section of the Public Prosecutor’s Office of the Republic of Florence.
Several users on BitGrail held crypto exchange were defrauded
According to the Italian police, this attack was performed by the Nano cryptocurrency exchange which was held by the company BitGrail. It is known that last year the exchange ran bankrupt and now is suspected of being responsible for a series of hacks. The police also highlighted that the theft had defrauded more than 2,30,000 individuals of virtual currencies. Observing the previous records shows that this case is the biggest cyber-financial attack in the country and can also be considered one of the world’s biggest attacks. According to the police, for the first time in entire Europe, they have documented such fraudulent conduct that was carried out entirely IT platforms for the loss of investors.
Suspect of the Nano token fraud case
According to the police, the suspect of the fraud is a person aged 34 years from Florence. The police also stated that the suspect is charged with IT fraud, fraudulent bankruptcy, and money laundering. It is also known that back in February 2018, the suspect itself contacted the police to report the hack and loss of several Nano tokens, which was a thinly traded crypto token. However, it is confirmed by Ivano Gabrielli, the director of the national centre for cyber crimes (CNAIPIC), that after investigating they think the chief of BitGrail was also involved in the activity.
Did BitGrail’s chief ignore the security flaw?
Gabrielli also stated that it is not yet confirmed that the chief was actively involved in the case, or he just ignored to increase the security measures after identifying the flaw. According to the police, if the firm had increased the security flaw after spotting the first hack, it would have been prevented easily, but the chief seemed to have failed to prevent it knowingly. However, the chief must have knowingly allowed the draining of Nano tokens from accounts.