Latest news about Bitcoin and all cryptocurrencies. Your daily crypto news habit.
U.S. law firms Silver Miller and Levi & Korsinsky have filed a class action lawsuit against Nano devs for allegedly violating securities laws.
Two United States law firms have filed a lawsuit against the developers of altcoin Nano (NANO) as well as Italian cryptocurrency exchange BitGrail, according to a notice published Jan. 7.
Crypto-focused law firm Silver Miller and securities law firm Levi & Korsinsky have filed a class action lawsuit representing James Fabian â âand on behalf of all other persons similarly situatedâ â an investor in Nano, formerly known as RaiBlocks (XRB).
The lawsuit alleges that Nano and âkey members of its core teamâ violated federal securities laws and directed investors to open accounts and place funds in âlittle known, and severely troubledâ Italian cryptocurrency exchange BitGrail. According to the lawsuit, the defendants also include BitGrail itself, as well as the exchangeâs CEO, Francesco âThe Bomberâ Firano âin connection with their promotion of a cryptocurrency called NANO.â
In a controversial incident, over $180 million in Nano â calculated at the time of the event â went missing from the exchange in February, 2018.
The lawsuit asks the court to order Nano to perform a ârescue forkâ of the allegedly lost Nano âinto a new cryptocurrency in a manner that would fairly compensate the class of victims.â
In a note on their website posted Feb. 9, BitGrail stated that 17 million Nano had been stolen in a hack. However, following the hack both BitGrail and the Nano team accused the other of being responsible for the theft of the tokens.
BitGrailâs CEO Firano told Cointelegraph in an interview that âitâs impossible to refund the stolen amount.â
A similar lawsuit was filed in April 2018, representing Nano investor Alex Brola. The lawsuit also accused Nanoâs team of violating U.S. securities laws by selling unregistered securities and negligently misrepresenting the reliability of BitGrail.
Later in October, Brola voluntarily withdrew the suit. The lead defense counsel Peters Scoolidge reportedly said that âthe plaintiff withdrew the complaint because the case lacked merit.â
Last month, Silver Miller filed a lawsuit against purported crypto hedge fund manager Jeremy Spence, accusing him of operating a fraudulent Ponzi scheme and promising âlucrative returns.â The returns reportedly were not profits from investments, but âwere simply reallocations to older investors of new investorsâ assets,â in a classic Ponzi scheme configuration.
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.