Despite still refusing to take responsibility for the hack of February 2018, Nano (XRB) Exchange BitGrail has prepared a plan to reimburse 80 percent of lost customer funds in the form of another token BGS (Bitgrail Shares). This token can only be traded on the platform itself and will be repurchased by the exchange at the end of every month at a fixed rate of$10.50 per BGS.
Legal Powers in Exchange for BGS
The other 20 percent of lost funds, the exchange claims, should already be credited to user accounts in its original form XRB.
However, there is a catch to this agreement. In accepting such a refund, you are signing away your rights to legal recourse, leaving you with no possibility of legal action should BitGrail fail to honor their promises.
But if you choose not to accept the agreement, then you will no longer have the ability to use the exchange! The statement reads:
“When the site reopens, the use of the platform for users who are victims of theft, will be bound to the signing of a settlement agreement to settle the dispute with the express waiver by the user to any type of legal action, to be formalized by filling out a form to be printed, signed and uploaded with the attached documents.
This waiver will allow users to enter the actual availability of the BGS tokens. [The] parties who will not agree to formalize the settlement agreement above, will have no alternative but the elimination of the account in accordance with the TOS in force.”
Not that this should matter to most: With trust at all-time-low for the exchange, it is not likely that anyone would choose to use it now that Binance has also listed the coin.
The hack is thought to have occurred in November 2017 but only came to light in early February 2018 around the same time as the listing of NANO on Binance.
— binance (@binance_2017) February 2, 2018
The total extent of lost funds is thought to be around $100 to $200 million worth of Nano cryptocurrency. Founder Firano has been accused of covering it up and defrauding new users out of their money in order to keep the exchange afloat.
The Italy-based crypto exchange founder is known more widely for his Twitter username Francesco the Bomber.
Firano blamed the hack on “faults in [Nano’s] software” and claimed an ongoing investigation is ongoing but has yet to provide more details on the subject.
The Nano team have distanced themselves from the exchange and released an official statement that claimed the loss was not due to an issue in the Nano protocol but appeared to be related to BitGrail’s software.