Payward, the parent company of cryptocurrency exchange Kraken, has filed legal action against PowerTrade, alleging the firm misappropriated more than $6 million in digital assets.
Payward filed an application with a U.S. federal court seeking discovery from financial institutions about PowerTrade and its co-founders. The filing claims PowerTrade carried out unauthorized transactions that shifted Kraken's account from a positive balance exceeding $6 million to a nearly $2 million deficit.
These transactions involved around 100 retroactive corrections to trades that had expired or settled months earlier. Kraken began institutional derivatives trading on the platform in 2022, with PowerTrade operating out of El Salvador and co-founded by Mario Gomez Lozada and Bernd Sischka.
In October 2025, Kraken attempted to withdraw funds amid concerns over liquidity but was unable to do so. A Kraken spokesperson said the exchange is committed to decisive action to protect the crypto industry. PowerTrade did not respond to requests for comment.
