Investments

The lawsuit, initially filed by IRA in June 2022, alleged that Gemini misrepresented its security protections, resulting in an exploit that removed $36 million in crypto.

Cryptocurrency exchange Gemini has reached an agreement with retirement and pension platform IRA Financial Trust, concluding a lawsuit initially filed in 2022.

In a July 18 filing in the United States District Court for the Southern District of New York, Judge Analisa Torres dismissed the case filed by IRA Financial Trust with prejudice after the firm and Gemini Trust said they had agreed on a settlement. The lawsuit, initially brought by IRA in June 2022, alleged that Gemini misrepresented security protections.

Specifically, IRA claimed Gemini’s lack of transparency on its security protocols made the company responsible for a February 2022 exploit in which a bad actor removed roughly $36 million in crypto. According to the platform, hackers “gain[ed] control of IRA’s master key,” allowing them to transfer “tens of millions of dollars’ worth of Bitcoin and Ether into a single customer retirement account, and then withdrawing all such assets.” A Gemini spokesperson told Cointelegraph at the time that the company rejected the allegations in the lawsuit. 

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