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.
See related article: Binance users burned by outage band together to take legal action
- 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.
See related article: ‘Buckle up’ for downsizing crypto market as employees laid off