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$36 Million in Cryptocurrency Stolen from Retirement Account Holders in IRA Financial Trust-Gemini Financial Security Breach

February 17, 2022 Blog

Zamansky LLC has been closely monitoring reports of a financial security breach of IRA Financial Trust, who partners with Gemini Trust Co., that resulted in $36 million dollars of cryptocurrency being stolen from account owners.

Reports indicate IRA Financial Trust, a platform offering self-directed retirement accounts with cryptocurrency investments, was hacked on or around February 8, 2022. In a statement, the company confirmed “suspicious activity” impacted customers with accounts on the Gemini cryptocurrency exchange. 

Investors are already coming forward with claims that cash was stolen from their accounts via transfers to a Roth IRA titled “Benjamin Choe”. Zamansky LLC takes these claims seriously and is dedicated to helping investors impacted by the hack explore their legal options. 

To date, IRA Financial Trust representatives have only made comments referencing their security and compliance protocols. There has been no mention of repaying clients their missing monies, nor has the company indicated details on preventing another financial security breach. It’s not clear who may end up being responsible for the lost funds.

Gemini released a statement clarifying they were not breached, though IRA Financial Trust’s accounts are serviced via the Gemini platform. The two security systems are independent of each other.

According to Bloomberg, the stolen millions were laundered through a “mixer” service known as tornado. A “mixer” helps keep cryptocurrency transactions anonymous. Investors transfer their money to the mixing service to increase anonymity, but the validity of the practice is debated and on some platforms mixing is banned.

The missing funds – $21 million of Bitcoin and $15 million in Ethereum – raise financial security concerns for investors regarding Bitcoin and cryptocurrency investments, as well as questions about how cryptocurrency is regulated. In the past, our Cryptocurrency lawyer

team at Zamansky LLC has written about and warned investors of “crypto investment scams,” and provided tips for avoiding fraudsters looking to capitalize on the latest investment trend. 

What To Do If You Are Impacted by the IRA Financial Trust-Gemini Security Breach

The IRA Financial Trust breach leaves thousands of people robbed of their hard-earned investments. As a leading securities and investment fraud law firm, Zamansky LLC will continue to follow-up on the investigation and speak to investors impacted by the hack.

If you have been impacted by the IRA Financial Trust-Gemini security breach, we encourage you to contact a Bitcoin and cryptocurrency attorney at Zamansky LLC to learn about the legal options available to you. Your call is free and confidential.