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| February 22, 2019

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Missing Archives -

Horrific Testimony Heard in Case of Missing Mom

February 20, 2019 |

Colorado man Patrick Frazee was ordered to stand trial for the murder of fiancee Kelsey Berreth Tuesday after gruesome testimony was delivered a at court hearing. Colorado Bureau of Investigation Agent Gregg Slater testified that former nurse Krystal Jean Lee Kenney, who had been having an affair with Frazee, said…
Newser

Woman Missing for 18 Years Found in Sister’s Freezer

February 19, 2019 |

Police in Croatia believe a family that reported a woman missing in 2005 had actually killed her years earlier and stored her body in a freezer. The body of Jasmina Dominic, who was 23 in 2000, when she was last seen, was found in a freezer in a hallway of…
Newser

Recognize This Shoe? Its Owner Is Missing a Foot

February 13, 2019 |

Canadian police say they’re not alarmed by a human foot on a British Columbia beach—at least the 15th discovered since 2007. The left foot washed ashore in West Vancouver in September, though the BC Coroners Service is just now looking for help identifying its owner. “Typically … we would…
Newser

Sources Say Nurse Will Be Charged in Missing Mom Case

February 4, 2019 |

The nurse who was being investigated in the case of missing and presumed murdered mom Kelsey Berreth is reportedly now being charged. Sources tell ABC News Krystal Lee, 32, will plead guilty to at least one charge in the Colorado case, but details of the exact charge or charges are…
Newser

Seats on Beach Likely From Soccer Star’s Missing Plane

January 30, 2019 |

Two seat cushions were found Monday on a beach in northwest France, and aviation authorities believe they hail from the single-engine aircraft thought to have crashed a week ago while carrying Argentine soccer star Emiliano Sala over the English Channel . The Air Accidents Investigation Branch announced Wednesday the cushions washed…
Newser

CNN

10 kidnapped children found dead in Tanzania with missing body parts, ministry says

January 29, 2019 |

Ten children kidnapped in Tanzania have been found dead with their body parts mutilated, authorities told CNN on Monday.
CNN.com – RSS Channel – World

Italian Court Orders Bitgrail Founder to Refund $170M of ‘Missing’ Cryptocurrency

January 29, 2019 |

Italian Court Orders Bitgrail Founder Firano to Refund $  170M of 'Missing' Cryptocurrency

An Italian court has ruled that Francesco Firano, founder of defunct cryptocurrency exchange Bitgrail, was at fault for the disappearance of $ 170 million worth of the nano digital currency on his exchange last year. Firano, who called himself “The Bomber,” is now “required to return as much of the assets to his customers as possible.”

Also read: Just Because Cryptocurrency Isn’t Legal Tender Doesn’t Make it Illegal

Court Seizes Firano’s Personal Assets to Repay Victims

In its ruling, the Italian Bankruptcy Court, which enlisted the services of a court-appointed technical expert, concluded that both Bitgrail and Firano personally be declared bankrupt and forfeit their assets.

Italian Court Orders Bitgrail Founder to Refund $  170M of 'Missing' Cryptocurrency

According to documents released by the Bitgrail victims advocacy group, the court’s decision, delivered Jan. 21, authorizes the seizure of Firano’s personal assets. So far, more than $ 1 million worth of assets have been seized, including a luxury vehicle, the group said. Digital assets worth several million dollars have also been confiscated from Bitgrail accounts and moved to accounts managed by trustees appointed by the court.

The documents show that Firano repeatedly mishandled security matters pertaining to the private keys of Bitgrail users, including his alleged transfer of client funds into wallets belonging to the exchange. Firano had failed to put in place suitable safeguards to prevent repeat, unauthorized withdrawals of nano from the exchange, the court said.

That’s despite tens of millions of dollars worth of nano going ‘missing’ on several occasions due to duplicate withdrawals being fraudulently made from a single request due to a bug. The court berated Firano for not appropriately disclosing the suspicious transactions to his customers.

Italian Court Orders Bitgrail Founder to Refund $  170M of 'Missing' Cryptocurrency

For example, the court found that the nano reported lost by Firano on Feb. 9, 2018 had actually been removed from the exchange months earlier, between July 2017 and December 2017. In total, about 10 million nano tokens left the exchange clandestinely during this period, with Firano’s alleged full knowledge, but he did nothing about it.

The most damaging detail relates to how, just days before announcing the $ 170 million ( 17 million nano) theft, the Bitgrail founder moved 230 BTC (about $ 1.8 million at the time) into a personal account on another exchange called The Rock Trading, in a bid to swap it for euros. The documents show that Firano had also tried to withdraw money through a bitcoin ATM linked to that exchange.

The court appointed expert concluded:

Therefore it was the Bitgrail exchange that actually requested to the node multiple times to allow the funds to leave the wallet (funds that in fact, had already left the account after the first request) and not the Nano network that allowed multiple withdrawals. The shortfall reported by Firano in February was caused by a transfer request generated by Bitgrail multiple times upon receiving a single request from the user.

Victory for Investors as Firano Seeks Way Out

Meanwhile, Francesco Firano attempted to cheat his way out of the mess. After nano withdrawals were closed on the Bitgrail exchange in January 2018, Firano promised to repay investors 20 percent of their funds, but only “if they agreed to sign a waiver foregoing any legal action against him.”

Italian Court Orders Bitgrail Founder to Refund $  170M of 'Missing' Cryptocurrency
Francesco Firano

Later, he announced plans to reopen the exchange and release a new token called Bitgrail Shares, which would be used to reimburse the victims over time. Users called him out, wary that it was an elaborate exit scam, and opted to go to court. Firano argued in a losing case that his exchange was a mere provider of services and that the currencies deposited on the exchange were “regular” since he could not freely use the deposited coins.

A Bitgrail advocacy group has called the court ruling “both a huge win for crypto users and a cautionary tale for cryptocurrency exchange owners, who have been provided with a clear example of how not to run an exchange or handle a loss of funds.”

What do you think about this turn of events in the Bitgrail case?  Let us know what you think in the comments section below.


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The post Italian Court Orders Bitgrail Founder to Refund $ 170M of ‘Missing’ Cryptocurrency appeared first on Bitcoin News.

Bitcoin News

CNN

34 dead, hundreds missing in Brazil dam collapse

January 27, 2019 |

At least 34 people have been confirmed dead and hundreds are missing Saturday after a dam burst a day earlier at a Brazilian iron mine, according to the local fire department.
CNN.com – RSS Channel – Regions – Americas

Sea of Mud and Waste Leaves 9 Dead, 300 Missing

January 26, 2019 |

Rescuers in helicopters on Saturday searched for survivors in a huge area in southeastern Brazil buried by mud from the collapse of a dam holding back mine waste, with at least nine people dead and up to 300 missing. Nearly a full day since the disaster happened, finding many more…
Newser