Media reveal details of $36 million withdrawal from IRA Financial Trust accounts

IRA Financial Trust staff were away due to a false police call during a $36 million theft from clients' crypto-pension accounts.

IRA Financial Trust staff were away from the scene during the $36 million theft from clients’ crypto-pension accounts due to a false police call, police officials told victims, CoinDesk reports.

The incident occurred on February 15. On Reddit forums, breach victims reported transfers of their assets to an unknown account.

Gemini, the company’s partner, ruled out a system compromise and said it stood ready to assist the investigation. Its representatives stressed that the proposed security measures are mandatory for all accounts and approved addresses.

Shortly before the incident, officers responded to reports of a supposed ‘robbery’ at IRA Financial Trust offices.

As soon as the staff returned to their desks, they found that the accounts had been hacked, and the funds on them were being actively transferred to other addresses, a police spokesperson said.

IRA Financial Trust staff managed to halt the malicious activity within minutes, but by then hundreds of accounts had already been affected. Police said they disclosed this information because IRA Financial Trust does not provide client details.

We are currently conducting an active investigation and are working on a potential return of funds. To preserve the integrity of the investigation, we cannot provide any further comments at this time, the company said.

According to a source familiar with the matter, the case has now been transferred to the FBI’s Cyber Crime Division.

Earlier on February 8, authorities arrested Ilya Lichtenstein and Heather Morgan on charges of laundering 119,754 BTC, stolen from Bitfinex in 2016. Authorities said they seized $3.6 billion worth of Bitcoin from the couple. They face up to 25 years in prison.

A week later, Morgan was released on $3 million bail.

Earlier journalist Laura Shin stated that former TenX co-founder and CFO Toby Henisha was involved in The DAO hack.

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