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Two US law firms, Silver Miller and Levi Korsinsky, LLP, have commenced a class action lawsuit against the developers of the blockchain-based payment platform and cryptocurrency Nano (NANO), and the Italian crypto exchange BitGrail.
Nano is an altcoin cryptocurrency that seeks to revolutionize blockchain technology by offering zero-fee transactions in real time with an energy consumption overhead lower than is typical with other cryptocurrencies, for example, Bitcoin. Nano was originally named Raiblocks and was created by Colin LeMahieu.
The two law firms have filed a class action lawsuit on the behalf of James Fabian who invested in Nano. The allegation is that key members of Nano violated federal securities laws and encouraged investors to open accounts with the Italian cryptocurrency exchange, named BitGrail.
This isn’t the first time Nano has come under legal scrutiny. In April 2018 the news broke that a class action lawsuit had been filed in the US state of New York, this was again on the behalf of investors. Alex Brola, who was also represented by Silver Miller, alleged that Nano’s core team both violated US securities laws by selling unregistered securities, as well as being deceitful about how reliable BitGrail is as a crypto exchange. 2018 had already been an eventful year for Nano, since in February over $180 million in Nano went missing from the exchange. This figure was disputed by BitGrail, who claimed that 17 million Nano had been stolen in what the concluded was a hack. The lawsuit was ultimately unsuccessful as Alex Brola withdrew the suit in October 2018.
In terms of the current lawsuit, the press release on the matter says of BitGrail:
“[BitGrail is a] little known, and severely troubled, Italian cryptocurrency exchange called BitGrail, where $170 million of the investors’ XRB allegedly “disappeared” in February 2018”
It is fair to say this is a tumultuous time for Nano. They were once doing very well by all accounts, with Nano being worth more than $50, however today it is around $1.
There is speculation by readers on social media that this lawsuit also lacks merit. Several people are claiming that Nano is not responsible for BitGrail’s poor security and as such, they also expect this suit to be dropped. Others disagree, claiming that for Silver Miller to be involved again, they must believe there to be more merit to this lawsuit than the last. With the details currently available, it isn’t possible to dissect the case in any significant way, but we are expecting more updates to come in the coming months about how the case is progressing.