Kraken Parent Payward Accuses Etana of $25 Million Ponzi-Like Custody Fraud
BeInCrypto
Payward, Kraken's parent company, has sued Etana Custody and its CEO for allegedly misappropriating over $25 million in a Ponzi-like scheme.Summary
Payward, the parent company of the cryptocurrency exchange Kraken, has filed an amended complaint alleging that Etana Custody and its CEO, Dion Brandon Russell, operated a Ponzi-like scheme. The lawsuit claims that Etana misappropriated more than $25 million in customer reserves by commingling funds and investing them in defaulted notes while falsely reporting that assets remained secure. Etana is currently in receivership following regulatory action in Colorado, with liabilities significantly exceeding its remaining cash holdings, leaving Payward to pursue recovery through ongoing legal proceedings against Russell and the claims process.
(Source：BeInCrypto)