IRA Financial Trust to sue Gemini over $36M crypto assets exploit back in February
2022.06.06 23:46
IRA Financial Trust to sue Gemini over $36M crypto assets exploit back in February
On Monday, IRA Financial Trust, a platform providing self-directed digital asset retirement and pension accounts, filed a lawsuit against cryptocurrency exchange Gemini for alleged negligence in safeguarding customers’ digital assets during a critical exploit. The firm’s client accounts were held in Gemini’s custody. On February 8, a breach led to the siphoning of $36 million in crypto assets from customers’ accounts via unauthorized withdrawals.
Since then, both companies have blamed each other for being responsible for the loss of funds. To complicate matters, an allegedly fake 911 call coincided with the time of the hack that distracted many of IRA Financial Trust’s employees from their desks. To avoid single points of failure in its security systems, Gemini possesses multiple security features such as two-factor authentication, whitelisting withdrawal addresses and fraud detection algorithms.
