Payward, the parent company of crypto exchange Kraken, has accused former custody partner Etana and its CEO, Dion Brandon Russell, of misappropriating more than $25 million in client funds, according to a second amended complaint filed in the U.S. District Court in Colorado on Monday.

The crypto exchange alleges that Etana Custody, which is going through Chapter 11 bankruptcy, operated a “Ponzi-like” scheme in which custodial assets were commingled, spent on operating expenses and risky investments, and falsely reported as intact to clients.

The Wyoming-based firm said it entrusted Etana with hundreds of millions of dollars over several years as part of a fiat on-ramp partnership. But when it sought to withdraw roughly $25 million in…