Kraken’s parent reveals Etana Custody’s $25M Ponzi-like scheme after a failed withdrawal, threatening client funds and crypto trust.
Key takeaways
- How a $25 Million Withdrawal Request Uncovered a Crypto Custodian Crisis
- When Kraken’s parent company, Payward, tried to pull $25 million from Etana Custody in April 2025, it didn’t just hit a bureaucratic snag—it cracked open a deeper prob...
- The timing wasn’t random. By May, Kraken customers started reporting trouble accessing their Etana-held assets. Etana had been facilitating transfers between Kraken an...
- This single withdrawal request forced Etana to reveal that it couldn’t meet obligations on demand. The complaint alleges Etana had been relying on new deposits to patc...
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Canonical source: https://mlxio.com/crypto/kraken-parent-sues-etana-25m-ponzi-scheme
