- Investors file a fresh lawsuit against Nano developers
- Plaintiffs claim the defendants have tried to distance themselves from their misfortune
- If the lawsuit succeeds it will open an avalanche of suits from international investors
The year 2019 begins on a bad note for the Nano Altcoin. For the second time, the developers are facing a class-action suit over the BitGrail hacking incident.
Nano Facing Legal Troubles
According to the Law360 news outlet, the lawsuit, proposed on Thursday, January 3, 2019, in a California Federal Court names Francesco Firano, the Nano cryptocurrency, Bitgrail and at least four other individuals. The suit papers contain allegations of fraud and violations of the Securities act with allegations that the defendants mislead the investors. The cryptocurrency which was worth over $50 is trading at a measly $1.
The last time Firano is recorded discussing the BitGrail incident was on June 16, 2018 when he mentioned on Twitter he hadn’t been able to access the BitGrail deposits besides reporting they had requested a follow-up on the promised legal actions by the concerned parties. Firano also advised those contacting him to cease doing so as he couldn‘t assist them.
The fresh lawsuit focusses on the activities of the Nano developers as well as the first lawsuit that was withdrawn last year. One of the plaintiffs going by the name Alex Brola claims in the suit that he invested over $50,000 in Nano and saw his investment grow to over $237,000 before it literally go down the drain during the Bitgrail hacking incident.
According to the Law360 news outlet, should the plaintiffs prove their case and show that Nano acted illegally, they stand a higher chance of winning the suit. A popular cryptocurrency news outlet elaborated:
“Being a registered or unregistered security is like the difference between hitting someone with and without car insurance. In the latter case, you are 100% liable. In the former, your insurance may absorb some or all of your responsibility.”
The Italian government is holding whatever remained of BitGrail’s funds after the hack during which over 80 percent of the company’s crypto tokens were lost. While Nano promised investors it was doing everything to ensure they go their investments back, it may appear like their efforts have borne no fruit.
The new lawsuit represents investors in the US alone and there are chances that if it ends in a positive note, it could open an avalanche of similar lawsuits from international investors who suffered a similar fate, since they will have something to base a new suit. The suit papers read in part:
“Defendants still own and control millions if not tens of millions of XRB and do not want to sacrifice any financial advantage they currently hold over the average XRB investor victimized by the XRB disappearance at BitGrail.”