Crypto Alternate Bitgrail Founder Accused by Italian Police of Faking Hacks That Led to Firm’s Chapter

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Italian police accused a man who ran a cryptocurrency exchange of being responsible for a series of hacks that caused millions in losses under a suspected massive fraud program.

Italian authorities accuse Bitgrail owners of faking hacks that led to Exchange’s bankruptcy

According to Reuters, the 34-year-old from Florence, known by his initials FF and owner of Bitgrail, a crypto company that was declared bankrupt in 2019, is suspected of faking a cyberattack in which over 230,000 people were defrauded Bitgrail’s nanocoin owned their own crypto launched in 2015.

The series of suspected fake hacks reportedly caused losses of 120 million euros ($ 146 million) and the person is charged with computer fraud, fraudulent bankruptcy and money laundering. In a statement, the Italian authorities said that such a case could be classified as “the largest cyber financial attack in Italy and one of the largest in the world”.

The report describes that FF itself reached out to the police in February 2018 to report the hack and the loss of a “huge” amount of nanocoins, but Ivano Gabrielli, director of the National Cyber ​​Crime Center (CNAIPIC), started to work suspect the 34-year-old man was involved.

The statement from the authorities adds:

For the first time in Italy and Europe, we have documented fraudulent and predatory behavior to the detriment of investors, carried out exclusively on IT platforms and using virtual currencies.

Did FF actively participate in the hacks?

Gabrielli said, however, that it was not yet clear whether FF was actively involved in the theft, “or whether he simply decided not to increase security once it was discovered,” as police believed it would have been easy to do Prevent theft in the first place.

As early as January 21, 2019, FF was sentenced by the Italian bankruptcy court to return as much assets as possible to its customers. Italian authorities also succeeded in seizing over $ 1 million personal assets including his car.

What do you think of the Bitgrail allegations? Let us know in the comments below.

Photo credit: Shutterstock, Pixabay, Wiki Commons

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