Payward Sues PowerTrade Over Alleged $7.2M in Misappropriated Crypto Assets

According to court filing details, Payward, the parent company of cryptocurrency exchange Kraken, filed a lawsuit against crypto derivatives platform PowerTrade alleging approximately $7.2 million in digital assets and trading gains were improperly removed through disputed account corrections and retroactive trade cancellations. The complaint claims PowerTrade executed unilateral adjustments that reduced Payward's institutional trading balance by over $6 million, shifting its account position from a surplus of more than $6 million to a deficit of nearly $2 million following roughly 100 separate corrections.

Payward and PowerTrade maintained an institutional derivatives trading relationship beginning in 2022 until October 2025, when market declines increased liquidity pressure. A Kraken spokesperson confirmed the legal action and stated that a worldwide freezing order was obtained from the Dubai International Financial Centre Courts against PowerTrade and its co-founders. Payward is also seeking discovery from financial institutions to trace additional assets and support recovery efforts.