/
Kraken parent Payward accuses Etana Custody of $25 million fraud in escalated lawsuit
May 4, 2026
< 1 min read
by Hannah Collymore
for CryptoPolitan
Share:
AI Overview
May 4, 2026: Payward (Kraken) filed a second amended complaint alleging former custody partner Etana and CEO Dion Brandon Russell misappropriated over $25 million in customer reserve funds in a 'Ponzi-like' scheme; lawsuit filed in U.S. District Court. Incident raises custody/security and regulatory risk for crypto exchanges and CEX custody providers, threatens customer trust, could prompt further legal action, investigations and impact exchange operations.
Bearish
Predictions Markets
See what traders are focused on
Payward, the parent company of crypto exchange Kraken, filed a second amended complaint today, May 4, 2026, alleging that former custody partner Etana and its CEO Dion Brandon Russell misappropriated over $25 million in customer reserve funds through what the filing called a “Ponzi-like” scheme. The lawsuit, which was filed in the U.S. District Court...
Predictions Markets
See what traders are focused on
Share:
Predictions Markets
See what traders are focused on
Share: