Gemini and IRA Financial Trust have decided to shake hands and settle their security scuffle.
Cryptocurrency exchange Gemini has settled a lawsuit with retirement and pension platform IRA Financial Trust, originally filed in 2022.
In a July 18 filing, Judge Analisa Torres of the United States District Court for the Southern District of New York dismissed the case with prejudice.
This followed an announcement from IRA Financial Trust and Gemini Trust that they had reached a settlement. The lawsuit, initiated by IRA in June 2022, claimed that Gemini had misrepresented its security protections.
IRA Financial Trust claimed that Gemini’s lack of transparency regarding its security protocols made the company liable for a February 2022 exploit, during which a bad actor stole approximately $36 million in cryptocurrency.
According to IRA, hackers gained control of the platform’s master key, enabling them to transfer tens of millions of dollars worth of Bitcoin and Ether into a single customer retirement account, and subsequently withdraw all assets. A Gemini spokesperson informed Cointelegraph at the time that the company denied the allegations in the lawsuit.
The July 18 filing did not provide details on the settlement. Cointelegraph reached out to Gemini for comment but did not receive a response at the time of publication.
The civil case concluded after Gemini settled with both the New York Department of Financial Services (NYDFS) and the New York Attorney General’s office over the use of the Gemini Earn program. In June, New York Attorney General Letitia James recovered approximately $50 million from Gemini, and the exchange agreed to return $1.1 billion to Earn users as part of an agreement with the NYDFS.
