Overview
- Payward, which filed a second amended complaint in Colorado federal court Monday, accuses former partner Etana and CEO Dion Brandon Russell of misappropriating more than $25 million in Kraken customer funds.
- The suit alleges a Ponzi-like setup that mixed client money with company cash, spent it on operating costs and risky bets, and sent account statements that showed full balances.
- Payward says the shortfall surfaced in April 2025 when a $25 million withdrawal request was delayed with “reconciliation” excuses and covered using new client deposits.
- Etana has been in court-supervised liquidation since November 7, 2025, so a court-appointed receiver now handles claims and any asset recovery instead of company management.
- Payward seeks at least $25 million plus possible treble damages under Colorado’s civil theft law, and the defendants have disputed the allegations.