Kraken's parent company, Payward, has filed a lawsuit against UAE-based derivatives platform PowerTrade, alleging its founders misappropriated $7.2 million in digital assets and unrealized gains. Payward is seeking discovery from U.S. financial institutions to identify and freeze additional assets.
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Kraken sues PowerTrade over alleged $7.2M misappropriation of digital assets
IN SHORT
Kraken's parent company, Payward, has filed a lawsuit against UAE-based derivatives platform PowerTrade, alleging its founders misappropriated $7.2 million in digital assets and unrealized gains. Payward is seeking discovery from U.S. financial institutions to identify and freeze additional assets.
Frequently asked questions
PowerTrade is a high-leverage derivatives platform based in the UAE, co-founded by CEO Mario Gomez Lozada and CFO Bernd Sischka. Kraken began institutional cryptocurrency derivatives trading on the platform in 2022.
Payward is the parent company of the cryptocurrency exchange Kraken. It is the entity that filed the lawsuit against PowerTrade.
Kraken alleges PowerTrade retroactively canceled profitable trades that had settled months earlier to create an artificial debt and seize Kraken's collateral.
Payward has filed a lawsuit in the U.S. seeking discovery and has obtained an interim worldwide freezing order from the DIFC Courts against PowerTrade and its co-founders.
What Happens Next
01Payward will seek to identify additional assets to freeze through discovery.
02Legal proceedings will continue in other jurisdictions where actions have been commenced.
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Kraken sues PowerTrade over alleged $7.2M misappropriation of digital assets