IRA Financial Trust sues Gemini over withdrawals from pension crypto accounts

IRA Financial Trust подала в суд on the cryptocurrency exchange Gemini. The company says the Winklevoss brothers’ platform is responsible for the February theft of funds from pension savings accounts.

The suit alleges the exchange did not have adequate security measures to protect client assets.

The IRA Financial Trust also noted that Gemini failed to freeze accounts promptly after the incident. This allowed the attacker to transfer funds from client accounts to the exchange even after the company notified the platform of the breach, according to IRA Financial Trust.

The filing pointed to a lack of transparency around Gemini’s cybersecurity protocols. It notes that the platform’s API was “designed with a single point of failure”.

As reported in February, the attacker withdrew assets from the IRA Financial Trust-managed pension accounts on Gemini. The loss was estimated at $36 million.

Representatives of the exchange dismissed any system compromise and said they were ready to cooperate with the investigation.

Later, media outlets learned that IRA Financial Trust staff were not on site during the theft due to a false police call.

In June, the U.S. Commodity Futures Trading Commission filed a lawsuit against Gemini. The suit alleged that the company misled the regulator in answering questions about a bitcoin-price-linked futures contract on the platform.

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