Nano developers urged users to open accounts with the Italian BitGrail exchange claiming that they are waiting for a more convenient wallet but the exchange later got hacked. Now the users are suing the developers for more than $170 million as we are about to find out more in the coming altcoin news.
The NANO cryptocurrency went through a period of the active shilling on Reddit right after the Nano developers touted the coin on social media. They will now have to find a way to compensate the users who lost their funds after the BitGrail exchange hack. Silver Miller and Levi Korninsky opened the class action lawsuit in the name of all investors. The complaint about this case alleges that the sale of Nano represented an offering of unregistered securities and that the lawsuit calls for a hard fork save of the assets lost in the exchange.
The BitGrail exchange hack led to the loss of more than $170 million NANO coins or around 17 million tokens at the time of the hack. The project itself has not seen any lost coins being that the network is faulty but the small exchange turned out to be a huge failure. BitGrail was closed for investigation and all of the assets were suspended. It was also possible that the NANO coins were siphoned off the exchange before the users noticed that they were unable to withdraw their balances. NANO shilling on social media quickly became overwhelming and the project reached high publicity. The project started with the name of Rai Blocks initially which was derived from a form of stone currency on the island of Yap. The first tokens were distributed through a faucet and this created a huge support base.
Once the cryptocurrency hit trading, the project took off pretty rapidly. The coin jumped from a few cents to a price above $36 and sparked a lot of interest and hopes that it will shine over other assets. unfortunately, as we read previously in the cryptocurrency news when the bear market hit, NANO erased more of its gains and the rebranding didn’t really help with the price. When NANO reached a peak of $1.50 in June, it started a downtrend again sinking to $0.76. The token also went from a phenomenal peak at 0.002 BTC to 9,000 Satoshi.
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