Kraken parent Payward sues Etana and its CEO over alleged $25M crypto custody fraud.

Payward, the parent company of Kraken, has filed a lawsuit against custody firm Etana and its CEO, alleging a $25 million fraud tied to crypto custody arrangements. The suit names the firm's chief executive directly, signalling Payward is pursuing personal as well as corporate liability.

Custody fraud allegations carry particular weight in crypto, where the line between client assets and operational funds has historically been blurred — a dynamic regulators and courts are increasingly scrutinising. The case adds to a growing body of litigation testing the legal obligations of third-party custodians in the digital asset space.

No settlement figures or court dates have been disclosed. The outcome could set a meaningful precedent for how custody agreements are drafted and enforced across the industry.