Payward, the parent company of cryptocurrency exchange Kraken, has taken legal action against PowerTrade, a high-leverage derivatives platform based in the U.A.E., claiming the firm’s founders misappropriated $7.2 million of Kraken’s digital assets and unrealized gains.

“PowerTrade and its co-founders misappropriated $7.2 million of Payward’s digital assets and unrealized gains. Payward’s legal proceedings seek the return of those funds,” a Kraken spokesperson said in an emailed statement to CoinDesk.

As such, Payward filed an application with a U.S. federal court seeking discovery from various U.S.-based financial institutions regarding PowerTrade and its co-founders to aid legal proceedings against them, according to a Thursday…