NANO-Cryptocurrency-Network-Faces-Second-Class-Lawsuit-For-Fraud

NANO Cryptocurrency Network Faces Second-Class Lawsuit For Fraud

NANO cryptocurrency network is in hot waters for the second time, where it is facing a class-action lawsuit filed against them in a California federal court. Francesco Firano, Nano as an entity, BitGrail, and four others have been named in the lawsuit. The lawsuit accuses the Nano cryptocurrency developers of fraud and violation of securities act.

The lawsuit alleges that Nano tricked its investors into putting in loads of money promising glittery returns, however, the breach into the BitGrail exchange network made many investors lose their money. This is not the first time when Nano has been taken to court over the issues with investors money.

The Previous Lawsuit:

Nano’s tryst with lawmakers does not seem to die down any soon as the current lawsuit is based upon the one that was withdrawn last year. In the other lawsuit, a plaintiff named Alex Brola has invested $50,000 which grew to $237,000, before losing everything in a breach on the BitGrail Exchange.

Similarly, Fabian, litigation secretary in San Francisco lost $2,60,000 in the BitGrail breach. His lawyers allege that Nano is manipulating its investors into buying loads of Nano cryptocurrency and then storing on the BitGrail, violating the security act. His lawyers said,

Mr. Fabian suffered damages, and we believe Nano, its core team, BitGrail and the owner of BitGrail are liable.

Nano Developers Tried to Protect BitGrail By Erasing the Evidence of Their Involvement

The filed lawsuit alleges that the NANO tried to distance itself from the BitGrail who has been a major fund provider and also helped in a large amount of liquidity for the Nano cryptocurrency. As of today, Binance provides the highest trading volume of around 70% to the Nano cryptocurrency.

As per the lawsuit,

The Nano Defendants have made every effort they could conceive of to distance themselves from BitGrail and erase the fact that each was substantially involved with BitGrail’s operations related to XRB. Indeed, the Nano Defendants have even gone so far as to fund a lawsuit against its former partner-in-crime, the BitGrail Defendants, so as to avoid unwanted attention for their actions. For example, on April 6, 2018, a putative class action (which has since been settled on an individual non-public basis) was filed in the United States District Court for the Southern District of New York. A mere three (3) days later, on April 9, 2018, the Nano Defendants announced that the Company was “sponsoring” a “legal fund” purportedly designed to “provide all victims of the hack of the cryptocurrency exchange BitGrail with equal access to representation” and enable such investors to seek recourse against the exchange.

Conclusion:

NANO cryptocurrency’s fall from the grace has been hard and the current lawsuit is only going to dent it further. Nano at its peak was trading at around $50 which has come down to $1. The recent lawsuit suggests the breach was not an accident and more of a manipulation.

Investors and developers need to realize the larger goal rather than short-term benefits through manipulation, you cannot steal someone’s money just because you think you are smart and full of resources. cases like these create roadblocks in the development of technology and its acceptance.