The IRA Financial Trust platform has sued the Gemini cryptocurrency exchange. The company believes that the Winklevoss brothers’ platform is responsible for the February theft of funds from pension savings accounts.
The lawsuit states that the exchange did not have proper security measures to protect customer assets.
IRA Financial Trust also noted that Gemini was unable to freeze accounts immediately after the incident. This allowed the attacker to transfer funds from clients’ accounts on the exchange even after the company notified the site of the hack, according to IRA Financial Trust.
The latter pointed out Gemini’s lack of transparency regarding cybersecurity protocols. At the same time, it is noted that the API interface of the platform was “designed with a single point of failure.”
Recall that in February, the attacker withdrew assets from pension savings accounts managed by IRA Financial Trust to Gemini. The damage was estimated at $36 million.
Representatives of the exchange ruled out compromising 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 site during the theft of funds due to a false call to the police.
In June, the U.S. Futures Trading Commission sued Gemini. According to the lawsuit, the company “misled the regulator by answering questions about a futures contract tied to the price of bitcoin on the platform.”