Payward Sues Etana Over $25M Crypto Custody Fraud

Kraken's parent company Payward has filed a lawsuit against Etana and its CEO alleging $25 million in crypto custody fraud. According to the allegations, client funds were misused, commingled, and concealed in what Payward characterizes as a "Ponzi-like" scheme that unraveled amid a liquidity crisis.

Allegations

Payward claims that Etana engaged in the misuse and commingling of client funds, with funds allegedly concealed as part of the fraudulent scheme. The liquidity crisis is cited as the event that led to the scheme's unraveling.

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