Cryptocurrency exchange Gemini has reached a settlement with retirement and pension platform IRA Financial Trust, concluding a lawsuit filed in 2022.
On July 18, Judge Analisa Torres of the United States District Court for the Southern District of New York dismissed the case filed by IRA Financial Trust with prejudice, following a settlement agreement between IRA Financial Trust and Gemini Trust.
The lawsuit, initially filed by IRA in June 2022, accused Gemini of misrepresenting its security protections.
IRA Financial Trust alleged that Gemini’s lack of transparency regarding its security protocols made the company liable for a February 2022 hack, during which approximately $36 million in cryptocurrency was stolen.
The platform claimed that hackers gained control of IRA’s master key, enabling them to transfer “tens of millions of dollars’ worth of Bitcoin and Ether into a single customer retirement account, and then withdrawing all such assets.”
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At the time, a Gemini spokesperson told Cointelegraph that the company rejected the allegations.
The July 18 filing did not disclose specific details of the settlement. Cointelegraph reached out to Gemini for comment but did not receive a response by the time of publication.
The resolution of the civil case follows Gemini’s settlements with the New York Department of Financial Services (NYDFS) and the New York Attorney General’s office concerning 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.
The conclusion of these legal matters marks a significant step for Gemini, as it continues to navigate the regulatory and legal challenges associated with its operations in the cryptocurrency space.
The details of the settlements with the NYDFS and the Attorney General’s office underline the financial implications and the importance of compliance and transparency in the rapidly evolving crypto industry.
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