In June 2022, IRA Financial Trust filed a lawsuit against cryptocurrency exchange Gemini. The complaint alleged that Gemini had misrepresented its security protections, which led to a significant exploit. According to IRA, this breach allowed hackers to steal approximately $36 million in crypto assets.
Court Ruling and Settlement
On July 18, 2024, the United States District Court for the Southern District of New York, under Judge Analisa Torres, dismissed the case with prejudice. This decision came after Gemini and IRA Financial Trust reached a settlement agreement. The specifics of the settlement were not disclosed in the court filing.
Details of the Allegations
IRA Financial Trust claimed that Gemini’s inadequate transparency about its security measures made it liable for a February 2022 security breach. Hackers allegedly gained control of IRA’s master key, enabling them to transfer large amounts of Bitcoin and Ether into a single retirement account before withdrawing the assets.
Related Settlements
This lawsuit’s resolution follows recent settlements Gemini reached with the New York Department of Financial Services (NYDFS) and the New York Attorney General’s office. In June, New York Attorney General Letitia James secured approximately $50 million from Gemini. Additionally, the NYDFS negotiated for Gemini to return $1.1 billion to users of the Gemini Earn program.
