IRA Financial Trust announced a lawsuit against cryptocurrency exchange Gemini Trust Company on Monday for alleged failures in safeguarding IRA’s crypto assets in the exchange.

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Fast facts

  • IRA manages self-directed retirement accounts in non-traditional assets such as Bitcoin which were held in the New York-based exchange.
  • A hack in IRA led to the theft of US$21 million in Bitcoin and US$15 million in Ethereum in February. 
  • The cryptocurrencies belonged to IRA clients that purchased the assets from Gemini.
  • In the lawsuit, IRA alleged Gemini “failed to freeze accounts within a sufficient time frame immediately following the incident.”
  • IRA said it intends to use lawsuit proceeds to reimburse customers impacted by the hack.
  • Gemini has rejected the allegations in the lawsuit. 

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