IRA Financial Trust Hacked, Millions in Crypto Funds Stolen

It’s a real problem getting your crypto account hacked, but if it contains the funds you’re going to use to retire, well… Then the situation becomes even bigger, and for several customers of IRA Financial Trust – a firm that allows its clients to invest their retirement funds in digital assets – this truth is hitting home right about now.

IRA Financial Trust Sees a Lot of Money Disappear

IRA Financial Trust has recently had about $36 million in client-owned digital funds stolen from its platform. Approximately $21 million in BTC and $15 million in ETH are missing at the time of writing. The incident is slated to have occurred on February 8 after IRA Financial Trust reported suspicious activity that affected customers of the Gemini Exchange, the firm’s parent company.

According to a new document issued by blockchain analysis firm Chainalysis, the funds stolen were allegedly linked to money laundering activity and were washed clean through a mixing service known as Tornado. Right now, IRA Financial Trust says it is investigating the matter fully.

At press time, it is estimated that despite the large amount of missing funds, only a handful of accounts were compromised. The rest of the company’s funds are allegedly safe.

IRA Financial founder Adam Bergman expressed his distaste with what occurred in an interview, stating:

I am very upset by what occurred, and I want to assure you that we are taking all appropriate steps to address this situation including the involvement of third-party forensic experts and state and federal law enforcement.

Almost immediately after the hack occurred, several victims took to social media platforms to explain what they were experiencing and to warn other customers. One client wrote:

I was notified IRA Financial had been hacked on February 8th. My account is linked to Gemini and had also been hacked. Money was transferred from my Gemini account to someone random. I’ve followed up with both Gemini and IRA Financial and they said they are working on it. I haven’t heard of anyone else being affected by this hack.

Customers Aren’t Happy (Obviously)

Another person stated:

I was also affected by the hack. Like others, I only had bitcoin and ETH removed (not USD) and it was transferred to an account with the last name Choe… I did chat with Gemini support, and they confirmed for me that their system was not hacked, and the issue was with an IRA Financial account. We are all in this together. Wishing all that were affected the best and that we are remediated for lost funds.

The situation is rough in that people relying on their retirement are often in a position where they are not working. They are also likely facing heavy medical treatment, and thus need their funds to live. IRA Financial Trust has not mentioned if it’s looking to reimburse the affected clients yet.

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Tags: crypto, IRA Financial Trust, Retirement

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