The bankruptcy proceedings for the Bitgrail seems to be going on well on course as an Italian court today has invited the creditors of the now-defunct exchange to file for their refund claims to get back their trapped assets. The deadline for filing these returns has been set till November.
As per the legal statement put forward by the court, there will be two hearings to determine the “passive state” in the bankruptcy proceedings of the two subsidiaries “WebCoin Solutions” on September 24, 2019, and ‘BG SERVICES SRL’ on October 07, 2019.
The former users would have a 30-day period after both the hearings to file proof of their assets trapped on the exchange. However, the claim application must be filed 30-days in advance before each hearing. Apart from that all the approved and denied claims would be provided with an opportunity to challenge it in the court.
There could be several reasons behind the denying of these claims, some denial might come because the user might have lied about their balance on the platform or maybe when the balance is zero or less than what the user has claimed in their filing.
An Italian court had earlier seized all the remaining assets of the controversial Bitgrail exchange and designated an independent administrator to look after the remaining assets. The court ordered that the exchange would remain closed until the bankruptcy proceedings are going on.
Bitgrail’s Fall From The Top
Bitgrail was an Italian cryptocurrency exchange and was among the well-known exchanges of the decentralized world until the infamous $170 million hacks took place in NANO cryptocurrency which was formerly known as Raiblocks. There were many red flags leading up to the theft, but the real problems began when both NANO and CEO of Bitgrail Firano started blaming each other for the mishap rather than working on the aftermath of the theft.
Nano denied any lapses from their side and claimed that there were no vulnerabilities with their software. However, the investigation revealed that BitGrail was holding XRB coins in a separate wallet then the rest of the coins which many says led to the vulnerability.
Later, Firano went on to claim that the Nano blockchain was full of technical flaws and a hard-fork from the network could have resolved most of the issues. However, Nano denied any such allegations and also turned down the hard-fork offer but said that they would finance the legal proceedings of the victims.
The story came to light when Nano was taken to the court by the investors to execute a forced hard-fork on the network. The matters became worst when Firano suggested a re-payment scheme which will be funded by Bitgrail, instead of owning up to his security lapses and mismanagement.
Looking at the duels between NANO and Firano, a group of investors took Firano to court and forced him to file for bankruptcy instead of trying to open the exchange again. While Firano did try to open the exchange in March 2018. But, within 3 hours of its opening, the court took charge and closed it and initiated the bankruptcy proceedings.
This article is Originally posted on CoinCentral.com
Author: Bitcoin Exchange Guide News Team