Payward, Kraken's parent company, has filed a lawsuit against PowerTrade for allegedly misappropriating $7.2 million in digital assets.
Payward, the parent company of Kraken, has launched a lawsuit against PowerTrade, accusing the derivatives trading firm of misappropriating $7.2 million in digital assets.
Unauthorized Transactions Result in Significant Losses
The legal filing claims that PowerTrade converted Kraken's profits of around $7 million into a deficit of nearly $2 million through a series of unauthorized adjustments to trades. The court documents reveal that over $6 million was allegedly removed from Kraken’s account through these illicit transactions.
As part of its legal strategy, Payward has asked a U.S. federal court for access to information from various U.S. financial institutions regarding PowerTrade and its founders. Kraken emphasized that this discovery is crucial to identify and freeze additional assets, aiming to prevent further harm from individuals like those at PowerTrade.
A representative from Kraken stated, "PowerTrade and its co-founders misappropriated $7.2 million of Payward’s digital assets and unrealized gains. Payward’s legal proceedings seek the return of those funds." The court has already granted a temporary worldwide asset freeze against PowerTrade and its founders in Dubai.
Kraken began trading with PowerTrade's platform in 2022, co-founded by Mario Gomez Lozada and Bernd Sischka. The partnership soured in October 2025 when Kraken faced difficulties withdrawing its funds amidst market downturns and PowerTrade's liquidity issues. Instead of returning Kraken's assets, PowerTrade allegedly executed unauthorized alterations to trades that had been settled long before, creating a fictitious negative balance.
So far, PowerTrade has not commented on the situation.
