IRA Financial Breach: Hackers Snatch $36 Million From US-Based Fintech Startup

Many individuals have joined IRA Financial Trust with the dream of establishing a secure future in cryptocurrency.

But it did not turn out the way they expected. A number of users reportedly lost their hard-earned retirement funds as a result.

Multiple news sites reported Tuesday that the South Dakota-headquartered IRA Financial Trust — a registered financial company that offers self-directed retirement accounts — has become the latest victim of a well-executed hack that resulted in the loss of $36 million in cryptocurrency.

Several accounts, according to reports, had unusual activity, as noticed by the financial tech startup.

Additionally, the hacker stole approximately $21 million worth of Bitcoin, followed by $15 billion worth of Ethereum.

IRA Financial: What Now?

IRA Financial partnered with Gemini Trust Co. — which has lately been under fire from the US Securities and Exchange Commission — to offer crypto buying services to their consumers.

IRA is one of a select few businesses that manage their retirement account services on top of Gemini’s institutional trading and custody platform.

Gemini Trust is the crypto exchange owned by the Winklevoss twins, Tyler and Cameron.

The IRA said in a statement on Feb. 9 that it discovered suspicious activities affecting a small percentage of its customers who have accounts on the Gemini cryptocurrency exchange.

BTC/USD at $44267 in the daily chart | Source: TradingView.com

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Gemini disclosed that that company was not hacked; nonetheless, the IRA has recognized an event occurred and is conducting an investigation.

“Immediately upon discovery, we initiated an investigation and notified state and federal law enforcement,” IRA stated.

Individual retirement accounts (or IRAs) are tax-advantaged savings vehicles available to employees in the United States, who can deduct their contributions from their taxable income.

For example, if a person earns $60,000 but contributes $5,000 to an IRA, he or she is taxed on only $55,000; people pay taxes only when money are withdrawn.

Investments in bonds, equities, and mutual funds are permitted in IRAs, but not in digital currencies.

Victims Scratching Their Heads

Meanwhile, the victims claim they are locked in a maze of contradictory facts that only serve to complicate an already perilous scenario.

Even the most basic data – the number of compromised accounts and who will cover their losses – remain unknown.

The year 2022 has only recently unfolded, and a handful of successful hacks have already been successfully carried out.

On the other hand, according to Cryptonary’s recent compilation of DeFi attacks, December of last year was one of the worst months for decentralized finance platforms.

Since 2019, IRA Financial has assured customers that their retirement assets are secure in its institutional accounts on Gemini.

Related Reading | What Went Wrong In The Crypto.com (CRO) Hack? Experts Weigh In

Featured image from Cryptonary, chart from TradingView.com