Gemini and IRA Financial Settle Lawsuit Over 2022 Cyberattack

Gemini, a well-known cryptocurrency exchange, and IRA Financial Trust, a platform for self-directed retirement accounts, have reportedly settled a legal dispute related to a cyberattack in 2022.

IRA Financial Trust had filed a lawsuit against Gemini following a February 2022 security breach that led to the loss of $36 million in customer assets held by Gemini.

The suit alleged that Gemini’s security measures were inadequate and that the breach could have been prevented if their security claims were accurate.

IRA Financial Trust criticized Gemini for its API design, which they claimed had a significant security flaw, and accused the exchange of failing to promptly secure accounts after the breach.

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IRA also highlighted the difficulty in getting Gemini to act swiftly to freeze affected accounts, which resulted in substantial theft.

After two years of legal battles, the two parties have reportedly reached a settlement. U.S. District Judge Analisa Torres has approved a dismissal agreement between Gemini and IRA Financial Trust. However, the specific terms of the settlement remain confidential.

Alexander Stefanov