The post Gemini and IRA Financial Trust Settle Lawsuit Over $36M Crypto Theft appeared on BitcoinEthereumNews.com.

Crypto exchange Gemini and IRA Financial Trust have reached an agreement to settle a legal dispute following a 2022 cyberattack. IRA Financial Trust claimed substantial financial losses of $36 million in customer assets due to Gemini’s security breach. According to the lawsuit, IRA criticized Gemini’s security measures, particularly the design of its API. Gemini and IRA Financial Trust settle lawsuit over $36 million cyber theft, shedding light on crypto security vulnerabilities. Gemini and IRA Financial Trust Reach Settlement in Cybersecurity Lawsuit Crypto exchange Gemini and self-directed retirement accounts platform IRA Financial Trust (IRA) have reportedly settled a lawsuit following a cyberattack that occurred in February 2022. The legal dispute stemmed from a security breach in which IRA claimed that $36 million worth of customer assets held in Gemini’s custody were stolen. The lawsuit was centered on accusations against Gemini’s supposedly robust security measures. Allegations of Security Failings In its legal claims, IRA argued that the cyber theft could have been prevented had Gemini’s security claims been accurate. A key point of contention was Gemini’s API, which was criticized for having a single point of failure. This vulnerability, the lawsuit alleged, allowed cyber attackers to steal all crypto assets managed by institutional clients such as IRA. “Contrary to Gemini’s many representations about security, Gemini designed its API (application programming interface) with a single point of failure. If breached, this single point of failure allowed a bad actor to steal all crypto assets held by the customers of an institutional customer, like IRA,” stated the lawsuit. Delayed Response to Cyber Attack The lawsuit further claimed that Gemini failed to immediately secure the compromised accounts after the cyberattack. IRA asserted that they had to make numerous efforts to alert Gemini about the breach. The delay reportedly allowed hackers to continue their activities, resulting…

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Filed under: News - @ July 21, 2024 9:18 pm