Investor Sues the Winklevoss Twins' Troubled Crypto Business Over Security Failures

IRA Financial Trust, a platform that lets users save for retirement in alternative assets like cryptocurrency, is suing the Gemini cryptocurrency exchange over an alleged failure to protect its customers from a heist that resulted in the theft of $36 million in crypto. The financial platform partners with Gemini, owned by the Winklevoss twins, Cameron and Tyler, to allow customers to trade and store cryptocurrency. From a report: In February, IRA was the victim of a major attack that drained the millions in funds customers had stored with Gemini. The company was reportedly swatted, the act of calling the police to report a fake crime at someone's location, when the cyberattack occurred. Police showed up at IRA's South Dakota headquarters after false reports of a robbery, while bad actors made off with millions in crypto. At the time, a source close to Gemini told CoinDesk it wasn't hacked and that it makes various security controls available to its partners. 'Gemini knew about the risks attendant to crypto assets,' IRA's complaint states. 'In fact, it built its public image around purportedly mitigating those risks. But like so much else in the world of crypto, Gemini's image is just that: an image. In reality, Gemini brushes security aside when there is a chance to earn more revenue.'

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