Short
- IRA Financial Trust lost $36 million in crypto in a February hack.
- The company uses New York-based crypto exchange Gemini to hold its digital assets.
- It alleges that Gemini “did not have proper safeguards in place to protect customer crypto assets” – and is looking to sue the exchange.
IRA Financial Trust, a company that manages individual retirement accounts in non-traditional assets such as Bitcointoday announced The lawsuit against cryptocurrency exchange Gemini.
IRA was financial hacked Back in February for $36 million worth of cryptocurrency. Criminals stole $21 million in Bitcoin and $15 million Ethereum Hack from retirement accounts.
The IRA uses Gemini’s platform to hold cryptocurrencies and alleges that the New York-based exchange’s systems were to blame because it “failed to freeze accounts within a sufficient time frame immediately following the incident.”
“As stated in the complaint, the lawsuit, IRA Financial Trust v. Gemini Trust Company, LLC, alleges that the Gemini cryptocurrency exchange platform did not have appropriate safeguards in place to protect customer crypto assets,” the announcement said today.
“IRA Financial Trust has been working to find solutions for its affected clients since this incident and is pledging to use the proceeds from the lawsuit to reimburse IRA Financial clients affected by the February 8, 2022 event “
Gemini responded to the allegations in a statement decrypt: “We deny the allegations in the lawsuit. Our security standards are among the highest in the industry and we are constantly updating them to ensure that our customers are always safe. In this case, as soon as IRA Financial has asked us to protect them Informed of the incident, we acted expeditiously to minimize the loss of funds from their accounts.”
Miami-based IRA Financial manages individual retirement accounts — tax-advantaged savings instruments for American workers who can deduct their contributions from their income.
Gemini is a popular exchange run by billionaire brothers Cameron and Tyler Winklevoss. there are two famous in the crypto world Because of his relatively early bitcoin investment which made him billions.
But Gemini has had bad luck lately: the Commodity Futures Trading Commission (CFTC) last week filed A complaint against the exchange, alleging that it misled regulators “to make materially false or misleading statements” in an attempt to gain approval for its bitcoin futures product.
and exchange announced This month the firm was laying off 10% of its employees in an effort to help weather the “crypto winter.”
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