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Kraken Parent Sues PowerTrade Over $7.2M in Missing Crypto
Kraken parent Payward claims PowerTrade misappropriated $7.2M in digital assets. A DIFC freezing order targets the platform; U.S. discovery seeks asset identification.
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Payward, the parent company of Kraken, has sued derivatives platform PowerTrade, alleging the firm and its co-founders misappropriated $7.2 million in digital assets and unrealized gains. The case centers on disputed account changes, blocked withdrawals, and bitcoin collateral.
Payward asked a U.S. federal court to allow discovery from American financial institutions. The company said the records will support legal proceedings against PowerTrade and its co-founders in other jurisdictions.
“PowerTrade and its co-founders misappropriated $7.2 million of Payward’s digital assets and unrealized gains,” a Kraken spokesperson said.
The spokesperson said Payward has already obtained a worldwide freezing order from the DIFC Courts in Dubai. That order targets PowerTrade and its co-founders directly.
Payward said it has started legal proceedings in other jurisdictions. The U.S. discovery request focuses on identifying assets tied to PowerTrade and its founders.
“The discovery we seek will help Payward identify assets to freeze,” Kraken said. The company said the action aims to prevent PowerTrade from harming others.
The filing describes PowerTrade as operated from El Salvador and based in the U.A.E. It names CEO Mario Gomez Lozada and CFO Bernd Sischka as co-founders.