Lawsuit against $NANO development team commences- likely the first of many

08 Jan, 2019
by Arthur Sillers
News
Lawsuit against $NANO development team commences- likely the first of many

According to a press release the Silver Miller law firm is moving forward with a lawsuit against the Nano development team for their role in the loss of some $170 Million worth of their XRB token.


The suit alleges that not only did Nano (formerly known as RaiBlocks/XRB) violate securities law, but it demands that it undergo a 'rescue fork' to reaproppriate the tokens lost in the collapse of the BitGrail exchange, which either underwent an exit scam, or was victim to a massive hack as the exchange claims. The details of the 'rescue fork' aren't specified, but the lawsuit demands that Nano find some method to transfer the full value of the 'allegedly missing XRB into a new cryptocurrency in a manner that would fairly compensate the class of victims.'
Read more: Nano founder says XRP is too slow for bank use, Nano is 3x faster
Nano had previously declared a similar lawsuit dropped on account of 'lack of merit,' but Silver Miller's is moving forward. BitGrail, the exchange in question, has had its asset's seized by an Italian court for its role in losing (or stealing) millions in cryptocurrency. The lawsuit against Nano asserts that the developers of Nano (then XRB) 'recklessly directed investors to open accounts and place their assets with a little known, and severely troubled, exchange.'


The dev team behind Nano is moving forward despite its legal troubles, which might involve the SEC looking into possible violations, for their part adding new developers and continuing to have some successes in adoption. Nano hasn't been hurt too badly by this news, but the results of the lawsuit might severly hamper the crypto team's efforts. Furthermore, this likely isn't the last such lawsuit, as the blowback from the frequent hacks and scams becomes more and more signficant and affects more people in traditional finance, who have access to enourmous amounts of capital and legal teams who are used to recouping losses, cryptocurrency is likely in for a very litigious period of growth.

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Read more about: Nano (NANO)

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