What was it?
Bitgrail was an Italian cryptocurrency exchange that gained recognition for its specialization in the relatively less prominent cryptocurrency Nano, previously known as RaiBlocks. The platform provided users an avenue to trade various cryptocurrencies, including Nano, Bitcoin, and Ethereum.
Bitgrail’s Fees
Bitgrail’s fee structure followed the rhythm of each distinct trading pair, executing an elegant variation customized to the unique dynamics of the pair. For instance, the exchange charged a 0.2% fee for Bitcoin-Nano trades.
Within the intricate choreography of Bitgrail’s fee system, the exchange orchestrated a harmonious arrangement, ensuring that a user swapping 100 Nano for Bitcoin would gracefully incur a fee of 0.2 Nano. This synchronization of the transaction was executed with precision and efficiency.
The Hack
In a devastating turn of events during February 2018, Bitgrail experienced a momentous breach that led to the unfortunate loss of around 17 million Nano, amounting to approximately $170 million in value at that time
Timeline of events
During the beginning of February 2018, BitGrail, a modest cryptocurrency exchange based in Italy, experienced a security breach that led to the unauthorized access and theft of a minimum of 17 million coins, with an estimated value of $170 million. An investigation later revealed that the majority of the coins were stolen from the platform’s cold wallets.
The year 2019 saw BitGrail declared insolvent by an Italian court, accompanied by a directive to restitute the pilfered cryptocurrency to the impacted users.
There were also allegations of fraudulent activity on the part of BitGrail’s founder, Francesco Firano, who was accused of misleading investors about the security of the platform.
By April 2023, BitGrail has ceased its operations, leading financial advisors to caution investors against engaging with diminutive exchanges possessing restricted capital and cybersecurity safeguards.
The Man Behind Bitgrail
At the helm of BitGrail was Francesco, commonly referred to as “The Bomber,” who held the positions of founder and operator. He occupied a pivotal role in the exchange’s administration and oversaw its security measures.
Following the breach, Francesco, known by the moniker “The Bomber,” made efforts to shift accountability away from BitGrail by asserting that the responsibility lay with the Nano protocol. However, the Nano team firmly denied these allegations, asserting that the security vulnerabilities originated from BitGrail’s own inadequate security measures. This disagreement led to a public clash between Francesco and the Nano developers.
Bitgrail’s Guilt: A Matter of Debate
Assigning accountability for the BitGrail breach is a multifaceted issue. Although Firano, the creator of BitGrail, attributed fault to the Nano protocol, evidence indicated insufficient security measures on the part of BitGrail. Furthermore, some users had reported suspicious activity on the platform prior to the hack.
The BitGrail breach serves as a poignant reminder of the inherent hazards associated with cryptocurrency trading, emphasizing the vital importance of establishing resilient security protocols to protect digital assets. The dispute revolving around Firano and the ensuing discourse on culpability highlight the necessity for transparency and responsibility within the domain of digital currencies.
How Investors can prevent such Incidents
- Do your research: Before you use any cryptocurrency exchange, do your research and make sure it is reputable. Read reviews, check the exchange’s security features, and make sure it is registered with the relevant authorities.
- Only use well-known exchanges: Avoid using small or unknown exchanges. These exchanges are more likely to be hacked or run by scammers.
- Keep your funds in cold storage: Don’t keep your funds on an exchange for an extended period of time. Transfer them to a cold wallet as soon as possible.
- Use strong passwords and 2FA: Use strong passwords and two-factor authentication (2FA) to protect your exchange accounts.
- Be careful about clicking on links: Be careful about clicking on links in emails or on social media that come from exchanges. These links could be malicious and could lead to you being phished.
- Keep your software up to date: Keep your software up to date, including your operating system, browser, and cryptocurrency wallet software. This will help to protect you from security vulnerabilities
FAQ
Twitter bitgrail
Regarding the BitGrail Twitter account, although it remains accessible, it is presently dormant and does not disseminate any news, updates regarding the platform, cryptocurrencies, or fluctuations in prices.
Twitter Incidents
BitGrail’s Twitter account transformed into a center for heated interactions among the founder, the Nano team, and users impacted by the hack. This dynamic cast doubts on the platform’s credibility and further fueled a public blame game, as evidenced by the exchanges in tweets and replies.
You are simply a coward and an idiot
— Francesco The Bomber (@bomberfrancy) February 7, 2019
Is Bitgrail safe
No, Bitgrail was not safe for trading cryptocurrencies. The company suffered a massive attack in which 17 million Nano were stolen due to inadequate security measures.
The BitGrail breach, coupled with preceding accounts of dubious activities on the platform, underscores a worrisome negligence towards user safety and fund security exhibited by BitGrail.
Bitgrail withdrawal
After the breach, BitGrail suspended withdrawals in an effort to tackle the situation. The exact date of the last withdrawal prior to the suspension remains unclear, contributing to the overall uncertainty surrounding this incident. In the aftermath of the attack, apprehensions arose regarding potential money laundering activities, given that the stolen funds were observed moving through different cryptocurrency exchanges.