Kraken's parent company Payward alleges $25 million crypto custody fraud in lawsuit against Etana and firm's CEO
Kraken's parent company sues Etana and CEO for $25M crypto custody fraud involving a Ponzi-like scheme and misappropriation of client funds.Summary
Kraken's parent company, Payward, has filed a lawsuit against Etana Custody and its CEO, Dion Brandon Russell, alleging a $25 million crypto custody fraud. The complaint claims Etana operated a 'Ponzi-like' scheme by commingling client funds, spending them on operating expenses and risky investments, and falsely reporting balances. Kraken asserts that Etana failed to return $25 million in reserves during a withdrawal request in April 2025, instead using new deposits to cover shortfalls. The lawsuit also accuses Etana of misusing funds for promissory notes and foreign-exchange strategies while misleading clients. Etana is undergoing court-supervised liquidation, and Kraken seeks damages, treble damages under civil theft claims, and injunctive relief. The case highlights broader concerns about counterparty risk in crypto markets.
(Source：Coindesk Indonesia)