Italian police accused a man running a cryptocurrency exchange of being responsible for a series of hacks that caused millions of losses as part of an alleged large-scale fraud scheme.

Italian authorities accuse Bitgrail owner of counterfeit hacks that led to Exchange bankruptcy

According to Reuters, the 34-year-old from Florence, known by his initials FF and owner of Bitgrail, a crypto company that was declared bankrupt in 2019, is suspected of faking a cyber attack that defrauded more than 230,000 people who owned a nano coin, launched Bitgrail’s own crypto in 2015.

The series of alleged bogus hacks would reportedly be causes losses of 120 million euros ($ 146 million), and the person is accused of computer fraud, fraudulent bankruptcy and money laundering. In a statement, the Italian authorities said such a case could be classified as the “largest cyber-financial attack in Italy and one of the largest in the world”.

The report states that FF itself contacted the police in February 2018 to report the hack and the loss of an ‘enormous’ amount of nanocoins, but Ivano Gabrielli, director of the National Cybercrime Center (CNAIPIC), began to suspect that the 34-year-old man was involved.

The authorities’ statement adds:

For the first time in Italy and Europe, we have documented fraudulent and predatory behavior to the detriment of investors, entirely on IT platforms and through the use of virtual currencies.

Did FF actively participate in the hacks?

Gabrielli stated, however, that it was not yet clear whether FF was actively participating in the theft “or whether he simply decided not to increase security measures after discovering the theft,” as police thought it would have been easy to deal with the theft in the first place. instance. .

On January 21, 2019, FF convicted by the Italian bankruptcy court to return as much of the assets as possible to its customers. Italian authorities also managed to seize more than $ 1 million in personal belongings, including his car.

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