Kraken sues former partner Etana for $25M in custody fraud

Kraken has filed a $25 million lawsuit against its former custody partner, Etana, which previously handled its fiat deposits and withdrawals, CoinDesk reported. According to a complaint filed in a Colorado federal court, Kraken alleges that Etana engaged in a classic Ponzi scheme. The exchange claims Etana diverted client assets for operating expenses or used them in risky investments, then used new client deposits to cover the gaps.