Class action lawsuit filed against Nano XRB Developers, US securities violation case against developers
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Class action lawsuit filed against Nano XRB Developers, US securities violation case against developers

Sore customers filed a class action lawsuit against Nano XRB developers in the US District Court Eastern District on April 5. American resident and XRB investor Alex Brola has filed the lawsuit through Silver Miller law firm, alleging that the core development team of the coin violated the US securities laws.

The lawsuit alleges that the firm sold unregistered securities to the investors, in violation of the US securities law. Additionally, the developers also misrepresented BitGrail’s reliability. This Italian crypto exchange is thought to be negligently represented as a reliable space for investors to park their assets. BitGrail was subjected to a security breach when 17 million Nano XRB coins, worth an estimated $187 million were stolen from the exchange.

The investors suggest that the developers create a ‘rescue fork’ in the currency, which could adequately represent the stolen funds. Plaintiff Brola and his law firm state in the lawsuit that the developers “engaged in an unregistered offering and sale of securities that violated federal securities laws, including Sections 5, 12(a), and 15 of the Securities Act of 1933, and wrongly ushered investors to BitGrail.  The Lawsuit pleads that the Court rescind the plaintiff class’ investments in XRB and require Nano to “rescue fork” the allegedly missing XRB into a new cryptocurrency in a manner that would fairly compensate the class of victims.”

Brola invested in Nano XRB in December 2017, buying coins worth $50,000 at the time. Though the lawsuit is filed by him, Silver Miller will be taking into account “at least hundreds if not thousands of putative Class members” and their complains within the spectrum of the case.

BitGrail was hacked in February 2018, bringing the credibility of the owner and operator Francesco “The Bomber” Firano to test. The Nano team suggested that they were reported about the loss by Firano himself.  In an effort to write their name off the fiasco, the team stated, “From our own preliminary investigation, no double spending was detected on the ledger and we have no reason to believe the loss was due to an issue in the Nano protocol. The problems appear to be related to BitGrail’s software.”

They also said, “BitGrail is an independent business and Nano is not responsible for the way Firano or BitGrail conduct their business… We now have sufficient reason to believe that Firano has been misleading the Nano Core Team and the community regarding the solvency of the BitGrail exchange for a significant period of time.”

The Nano team also suggested that Firano wanted them to make changes to their ledger to cover the losses he suffered but they refused. They have not released any statement regarding this new class action lawsuit against them.

Silver Miller, on the other hand, is making a case against crypto frauds, acting as “strong advocate for aggrieved investors harmed by the misrepresentations and illegal actions of cryptocurrency exchanges and issuers.” They already have class action lawsuits pending against Coinbase, Kraken, Tezos and BitConnect.

About the author

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Solomon Kingsley

Soloman got involved with Bitcoin while studying his Masters in Finance. Since then, he has been writing blogs relating to the cryptocurrencies and latest news relating to the same. Now he has joined this platform to take his passion a step ahead.

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