Cryptocurrency exchange Kraken alleges PowerTrade misappropriated $7.2 million in digital assets and unrealized gains via unauthorized adjustments.
Cryptocurrency exchange Kraken has filed a lawsuit against derivatives firm PowerTrade, accusing it of misappropriating $7.2 million in digital assets and unrealized gains. The legal filing claims PowerTrade altered Kraken’s $7 million positive balance to a $2 million deficit through unauthorized corrections tied to expired or settled trades.
Kraken’s parent company, Payward, seeks court-ordered discovery from U.S.-based financial institutions to trace assets linked to PowerTrade and its co-founders. The lawsuit aims to freeze additional assets and recover the disputed funds, according to a statement from Kraken.
The dispute centers on trades executed months prior, with Kraken alleging improper adjustments by PowerTrade. Legal proceedings are underway in a U.S. federal court to address the claims.