This week, when the developer sought sanctions after the plaintiff withdrew the lawsuit, the ongoing litigation involving the crypto project Nano changed again.
After the token buyers abandoned the proposed class action lawsuit, the Nano team was required to pay $701,000 in attorney’s fees and fees as sanctions. According to reports, on July 27, its legal team told the California Federal Court that some of the claims against them were “unfounded in law.” Law 360.
Token purchaser Alec Otto accused Nano developers of fraud, securities law violations and other crimes related to the loss of millions of tokens after the BitGrail exchange hack in 2018.
The developer stated that Otto’s class action claim was submitted too late, at least one of the documents contained allegations that were not supported by evidence, and that he made a series of “absurd and/or legally baseless arguments”, adding Say:
“Mr. Otto’s testimony shows that he doesn’t know how many XRB he bought, when he bought it, or how much is left when BitGrail shuts down.”
There are many lawsuits against Nano dating back three years, when it was called RaiBlocks. On February 8, 2018, 15 million XRB (the former native currency of the Nano network) was stolen from the Italian cryptocurrency exchange BitGrail.
Soon after the $150 million hack, Francesco Firano, owner and operator of BitGrail, Ask Nano to change its blockchain to make up for losses.
Nano core development team subsequently Accuses BitGrail of insolvency and negligence Manage the funds that led to the invasion.
When Firano pointed the finger at Nano, the plot became more complicated, accusing it of problems with its protocol and timestamp technology.
Neither party bears full responsibility. Therefore, some individual token holders, including Alex Brola, have already Attempt to sue Nano for losses since.Brora’s case is Dismissed by a New York District Judge in October 2018.
Otto first tried to prove his lawsuit was a class action in August 2020, then tried again in December to prove his lawsuit, and then decided to withdraw it last month. U.S. District Judge Yvonne Gonzalez Rogers approved voluntary dismissal, but requested a briefing on whether Otto and his lawyers should face sanctions.
Nano developers have asked Otto and all three law firms representing him to jointly bear their legal costs of up to $700,000. At the time of writing, Otto and his lawyers have yet to respond.