Miami based retirement accounts managing company went on to sue crypto exchange Gemini, however the latter denies the allegations.
The company responsible for managing the individual retirement accounts of Bitcoin (BTC) and Ethereum (ETH) like non-traditional assets, IRA Financial Trust, announced that it sued a lawsuit against crypto exchange Gemini. This came in wake of an incident that happened some time earlier.
In February, IRA Financial was hacked and about $36 million worth crypto stolen from the firm. Hackers stole $21 million worth bitcoin (BTC) and $15 million worth Ethereum (ETH) that belong to retirement accounts. Now since IRA uses crypto exchange Gemini’s platform for holding its crypto assets, it blamed crtpo exchange’s systems and alleged that it was Gemini who failed to seize the accounts immediately after the incident despite having sufficient time frame.
The announcement was as it was stated in the complaint following the lawsuit of IRA Financial Trust vs. Gemini Trust Company, LLC where allegations are that the cryptocurrency exchange platform of Gemining did not have enough safety measures in order to safeguard crypto assets of their clients and customers.
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Further, it added that since the attack IRA Financial Trust was working to find a proper resolution for those customers who got impacted since the incident happened. It had also pledged to use the proceeds collected from the lawsuit to compensate customers of IRA Financial who got impacted by the incident of 8th February, 2022.
New York based crypto exchange Gemining also responded over the allegations stating that it rejects the allegations that were mentioned in the lawsuit. Crypto exchange clarified that their security measures are among the highest standards across the industry and they had been updating them consistently to ensure protection of their customers and their assets. About the allegations, Gemini said that they had responded as soon as IRA Financial notified them about their security incident. Crypto exchanges acted quickly to minimize the loss of funds that were stolen from their accounts.
IRA Financial Trust is based in Miami and manages individual retirement accounts that are saving instruments along with tax advantages for the workers in the United States who can deduct their own contributions directly from their income.
While Gemini is a popular crypto exchange based in New York that is run by Cameron and Tyler Winklevoss, two billionaire brothers. Both are quite famous in the entire crypto space given their early investments in bitcoin that ended up making them billions.
Source: https://www.thecoinrepublic.com/2022/06/07/why-did-crypto-ira-company-sue-a-lawsuit-against-crypto-exchange-gemini/