An ongoing lawsuit involving crypto project Nano has taken another turn this week when the developers sought a sanction after the plaintiff dropped the case.

The Nano team is afterwards $701,000 in attorney fees and costs equally a sanction after a token heir-apparent dropped his proposed form action. On Tuesday, its legal team told a California federal court that some of the claims against them had been "legally baseless," co-ordinate to Law360.

Token heir-apparent Alec Otto had accused the Nano developers of fraud, violating securities laws and other offenses in connection with the loss of millions of tokens following the BitGrail commutation hack in 2022.

The developers stated that Otto's class action claims were filed too late, at to the lowest degree one filing contained allegations unsupported by evidence and that he advanced a serial of "absurd and/or conspicuously legally meritless arguments," adding:

"Mr. Otto's deposition testimony revealed that he has no idea how many XRB he purchased, when he purchased them, or how many were left on BitGrail when it closed."

There have been a number of lawsuits targeting Nano going back three years when it was known as RaiBlocks. On February eight, 2022, 15 million XRB — the former native token of the Nano network — were stolen from the Italian cryptocurrency substitution BitGrail.

Shortly after the $150 million hack, BitGrail'southward possessor and operator, Francesco Firano, asked Nano to modify its blockchain to cover the losses.

The Nano core evolution team so accused BitGrail of beingness insolvent and negligent in managing funds which had resulted in the incursion.

The plot thickened when Firano pointed the finger at Nano, blaming an effect with its protocol and timestamp applied science.

Related: Strange Twists And Turns Of Nano And BitGrail Since The $150 Mln Hack

Neither party took total responsibility, consequently, a number of private tokenholders including Alex Brola take tried to sue Nano for their losses since. Brola'southward case was dismissed by a New York district gauge in October 2022.

Otto first tried to certify his adapt every bit a form activity in Baronial 2022, so again in December, earlier deciding to withdraw it last month. United States District Guess Yvonne Gonzalez Rogers approved the voluntary dismissal only requested a briefing on whether Otto and his counsel should face sanctions.

Nano developers take asked that Otto and all three law firms representing him be held jointly responsible for their hefty $700K legal costs. Otto and his counsel has yet to file a response at the time of writing.