BitGrail (2018) — Crypto Hack
LaunderedItalian exchange BitGrail lost 17M NANO tokens from its hot wallet, with founder Francesco Firano later convicted of fraud.
Summary
Italian exchange BitGrail lost 17M NANO tokens from its hot wallet, with founder Francesco Firano later convicted of fraud.
How It Was Compromised — CEX via Private Key Compromise
BitGrail claimed to have lost 17M NANO tokens through unauthorized transfers. Investigations revealed significant internal mismanagement and possible fraud by founder Francesco Firano. The NANO team disputed Firano's timeline and accusations, suggesting internal theft. Italian courts later declared Firano criminally liable and ordered liquidation.
Fund Flow & Laundering Analysis
NANO tokens moved to other exchanges for conversion. Due to NANO's lack of smart contracts, tracking was difficult. Italian bankruptcy proceedings seized exchange assets. Francesco Firano was found guilty of fraudulent bankruptcy. Most user funds were never recovered — bankruptcy proceeds covered a fraction of losses.