Payward, the parent company of cryptocurrency exchange Kraken, has sued UAE‑based derivatives platform PowerTrade, alleging that its founders misappropriated $7.2 million of digital assets and unrealized gains.
“PowerTrade and its co‑founders appropriated $7.2 million of Payward’s digital assets and unrealized gains,” a Kraken spokesperson said in an email to CoinDesk. “We are seeking the return of those funds.”
Accordingly, Payward has filed with a U.S. federal court, requesting discovery from U.S. financial institutions to support the case against PowerTrade and its founders, the Thursday filing read.
The lawsuit claims PowerTrade unlawfully withdrew more than $6 million from Payward’s account through a series of unilateral and unauthorized transactions.
Those transactions allegedly involved retroactively canceling profitable trades that had closed months earlier, creating a negative balance and enabling the removal of Payward’s collateral, according to the filing.
“We have already secured an interim worldwide freezing order from the DIFC (Dubai International Financial Centre) Courts against PowerTrade and its founders and have initiated additional proceedings in other jurisdictions,” the spokesperson added.
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