Class action lawsuit filed against Nano (XRB) for violating U.S. Securities Act

January 10, 2019
Chris Wheal

Nano f/k/a RaiBlocks (XRB) is being sued for allegedly violating the 1933 U.S. securities laws. On behalf of the investors, Silver Miller, an American crypto law firm, and Levi & Korsinsky, LLP, are taking Nano to court for the loss of $170 million XRB.

When Nano first started their company, they made efforts to make their XRB available to a variety of investors and markets. To do this, Nano urged their investors to invest their XRB assets in BitGrail, one of Italy’s cryptocurrency exchanges, by opening an account and placing their XRB into it. However, the lawsuit claims the investors didn’t know that BitGrail was facing difficulty and was considered “seriously troubled.”

The Securities Act of 1933 requires that all investors are to receive information that concerns and is significant to the securities that are being offered at a public sale. The Act also prohibits all forms of fraud, such as misrepresentations within the sale of securities.

In Feb. 2018, XRB investors lost more than $170 million due to their XRB “disappearing” on BitGrail. Shortly thereafter, Nano put out a press release attempting to clear their name. The press release stated that Nano’s owner and operator, Francesco “The Bomber” Firano, informed them of the loss from the BitGrail wallet and “promptly contacted law enforcement.”

Nano also stated they couldn’t find any technical error on the ledger, and the malfunction had appeared to only lie within BitGrail’s software, which they stated they had no prior knowledge of its issues.

Post written by Chris Wheal
Chris Wheal is editor of OpenLedger's news and features service. An award-wining business journalists himself, he runs a team of freelance journalists from across the UK and north America.

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