IRA Financial Trust Sues Gemini After a $36 Million Theft in February

IRA Financial Trust Sues Gemini After a $36 Million Theft in February

07.06.2022 07:13
by Srđan Jovanović
1 min read

Some more bad news for Gemini. Namely, IRA Financial Trust has filed a lawsuit against the New York-based crypto platform, blaming Gemini for poor conduct after the theft of $36 million in crypto from IRA’s accounts back in February.

IRA Financial Trust deals with retirements funds comprised of cryptocurrency funding. Hackers stole $21 million in Bitcoin and $15 million in Ethereum from the retirement accounts, which were held on Gemini.

IRA blames Gemini for failing to freeze the accounts in a sufficient time frame right after the theft had occurred. Allegedly, Gemini suffers from inadequate safeguards, which had left the customers’ assets in a vulnerable state.

IRA pledged to use all potential proceeds from the lawsuit to reimburse the customers who lost money in February.

Gemini rejected the allegations, claiming that their security systems are among the best in the industry and that they’ve acted in a timely and responsible manner, with the goal of mitigating IRA customers’ loss of funds.

Author

  • Long-time editor, crypto enthusiast, and all for free trade. Also a social scientist, musician, and a thorough-going liberal. Wrapped up a degree in linguistics, an MA in politics, and a PhD in history. Six postdocs afterwards. Speaks English, Serbian, Czech, and Swedish, communicative in German, Russian, Polish, Italian, Slovak, Norwegian, and even some Mandarin. Cryptocurrencies are the future.

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