“Mr. Firano in connection with his operation of Bitgrail, reported to the Bankruptcy Court that between February 2nd and February 5th, 2018 — days before Firano would make his public announcement about the 17 million NANO loss — Mr. Firano had deposited a total of 230 Bitcoin (approximately $ 1.8 million) in a personal account on a BTC-EUR cryptocurrency exchange called The Rock Trading.”

The Court found that in July 2017, 2.5 million NANO were lost by the exchange. The Court noted that Mr. Firano had been aware of these unauthorized withdrawals almost immediately after they occurredand found that Mr. Firano had reported on Twitter in late July 2017 that he had blacklisted accounts connected to the unauthorized transfers.

The Court reported that three months later, in October 2018, another 7.5 million NANO had been improperly removed from the exchange. Again, Mr. Firano took no meaningful action.