Let’s be clear here Francesco Firano (/u/TheBomber9) is a criminal. The hack was in November which means that he’s been insolvent for months & has been defrauding new users out of their money to keep the exchange afloat. Once the Binance listing was imminent he locked all the exchange’s assets. His actions show clear intent. If his exchange was hacked & he immediately reported it to the police, he’d just be incompetent but by hiding this from new users he transitioned from moron to criminal.
This is the US legal definition of Fraud:
- Fraud. A false representation of a matter of fact—whether by words or by conduct, by false or misleading allegations, or by concealment of what should have been disclosed—that deceives and is intended to deceive another so that the individual will act upon it to her or his legal injury.
In order to be convicted of fraud in the US, the following must be proved:
Fraud must be proved by showing that the defendant’s actions involved five separate elements:
(1) a false statement of a material fact,
(2) knowledge on the part of the defendant that the statement is untrue,
(3) intent on the part of the defendant to deceive the alleged victim,
(4) justifiable reliance by the alleged victim on the statement, and
(5) injury to the alleged victim as a result.
Now I’m not a lawyer but it seems to me that he is clearly guilty & convictable. It’s likely the EU/Italian definition is the same since fraud is a universal crime. He may also be guilty of running a ponzi scheme
We need to make sure people don’t get away with this sort of thing. I don’t want to say he’s destroyed people’s lives because there is almost always a way to recover but he has certainly severely damaged peoples wellbeing.
I’m in the US but if someone in the EU/Italy could contact the authorities & let them know about the situation maybe we can get a little bit of justice for his victims. I don’t trust him at all when he said he has reported this to authorities, it’s very likely he completely misrepresented the situation to them even if he did (which is also a crime).
If you live in the USA & are a victim please call the FBI to file a report. Apparently extradition is possible between the USA & Italy. If there is enough outcry about this situation maybe we can get the wheels turning.
Edit: He’s also guilty of embezzlement
Elements common to embezzlement are as follows: (1) the property must belong to a person other than the accused, such as an employer or principal; (2) the property must be converted subsequent to the defendant’s original and lawful possession of it; (3) the defendant must be in a position of trust, so that the property is held by him or her pursuant to some fiduciary duty; and (4) the defendant must have an intent to defraud the owner at the time of the conversion.
Edit: Evidence he knew about the hack (personally I think it’s borderline impossible for him not to realize he’s missing over 3/4ths of the XRB in his wallet but here’s some hard evidence anyways). From https://www.reddit.com/r/nanocurrency/comments/7wm2sp/collect_bitgrail_evidence_here/ Screenshots of negative balance issues from January: https://imgur.com/a/FCIme https://imgur.com/a/YYf0U https://imgur.com/a/Qg7BL
submitted by /u/Rezzz8080
Written by /u/Rezzz8080 @ https://www.reddit.com/r/CryptoCurrency/comments/7wlo19/the_bitgrail_hack_was_months_ago_bomber_defrauded/ February 11, 2018 /u/Rezzz8080