Italian BitGrail Crypto-Exchange Shuts Down After Court Order

  • Italian cryptocurrency exchange BitGrail was asked to shut down by court order after reopening operations on Tuesday. The exchange was initially shut down in February

Cover image via U.Today

Italian cryptocurrency exchange BitGrail was asked to shut down by court order after reopening operations on Tuesday, the company says.

The exchange was initially shut down in February after 17 million Nano tokens (XRB)  worth $140 mln were found to be missing, and reopened for trading yesterday at 10:00 UTC only to be shut down five hours later at 13:20 UTC.

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BitGrail wrote in a statement on its website:

“This morning, following the reopening, we were notified of a deed by the court of Florence requesting the immediate closure of BitGrail and this situation will persist until a decision is made by the courts, about the precautionary suspension request made by the Bonelli law office on behalf of a client. The decision is scheduled for May 16, 2018.”

BitGrail contends that “unauthorized transactions” that removed the tokens from the exchange occurred due to a bug in the exchange’s software.

BitGrail says:

“To date, all reliable evidence we have reviewed continues to point to a bug in BitGrail’s exchange software as the reason for the loss of funds.”

About the author

Urvashi Verma is a Chicago-based reporter who writes about the convergence of technology and business. She is interested in fintech, digital currencies, blockchain and currency markets. Urvashi formerly worked with the Times of Israel covering Israel's booming tech industry including Start-Up Nation, venture capital investment, and crowd-funding platforms.

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