IRA Financial Trust sues Gemini over unidentified withdrawal of funds from crypto retirement accounts

The IRA Financial Trust platform has sued the Gemini cryptocurrency exchange.The company believes that the site of the brothersWinklevoss is responsible for the February theft of funds from retirement savings accounts.

The lawsuit says the exchange did not have adequate security measures to protect clients' assets. 

IRA Financial Trust also noted that Geminifailed to freeze accounts immediately after the incident. This allowed the attacker to transfer funds from client accounts on the exchange even after the company notified the platform about the hack, according to IRA Financial Trust. 

The latter pointed out Gemini's lack of transparency regarding cybersecurity protocols. It is noted that the platform API was «designed with a single point of failure».

Recall that in February, the attacker withdrew assets from IRA Financial Trust-managed pension savings accounts to Gemini. Damage was estimated at $36 million.

Representatives of the exchange ruled out a compromise of the system and announced their readiness to assist in the investigation of the incident.

Later, the media learned that IRA Financial Trust employees were absent from the scene during the theft of funds due to a false call to the police. 

In June, the U.S. Commodity Futures Trading Commissionsued Gemini. According to the lawsuit, the company "misled the regulator by answering questions about a futures contract pegged to the price of bitcoin on the platform."