The U.S. Department of Justice (DoJ) has officially concluded its inquiry into Jesse Powell, co-founder of Kraken, ending a probe related to allegations of hacking a nonprofit organization. The investigation, which began in 2023, was unrelated to Kraken’s operations and resulted in no charges filed. Powell’s seized devices were returned earlier this year.
Investigation Timeline and Allegations of US Kraken Co-Founder
The investigation surrounding Jesse Powell began when the Verge Center for the Arts, a nonprofit he co-founded, accused him of accessing unauthorized areas of its computer system. The situation escalated after Powell was removed from the nonprofit’s board due to a management dispute. Allegations suggested that he restricted employee access to vital internal communications.
"#FBI raids ex-Kraken CEO Jesse Powell’s home in #cyber stalking probe against Verge Center for the Arts."
Translation: FBI raids ex-Kraken CEO Jesse Powell鈥檚 home in a cyber stalking investigation involving Verge Center for the Arts.
The FBI executed a search of Powell鈥檚 residence in Los Angeles, seizing devices such as computers and phones. Despite prolonged scrutiny, federal prosecutors determined in April 2024 that there was insufficient evidence to substantiate criminal charges. In June 2024, the U.S. Attorney鈥檚 Office relayed a declination letter, formally concluding the case and allowing Powell to reclaim his belongings.
Further confirmations from major news outlets emphasized that the investigation had no ties to Kraken’s business practices, being solely linked to Powell’s disputes with Verge management. Powell, who previously contributed over $1 million to the nonprofit, asserted that the allegations were unfounded and part of a wider conspiracy against him.
"馃毃 BREAKING: FBI drops probe into Kraken founder Jesse Powell and returns seized devices."
Translation: Breaking news: FBI concludes its investigation against Kraken founder Jesse Powell and returns the confiscated equipment.
The closing of the investigation offers relief for Powell, who indicated that the procedures had adversely affected his reputation and that of Kraken. As he shifts his focus towards civil litigation against the current board members of Verge, Powell aims to reestablish his image amidst ongoing legal battles.
Implications for Powell and Kraken
With the DoJ’s decision marking a significant moment for Powell, he is determined to pursue defamation cases to rebut the allegations. His legal representative noted the importance of the declination letter in helping to restore Powell’s societal image.
Although the case did not directly involve Kraken, it raised concerns regarding market perceptions and public trust related to the firm. Powell’s situation is reflective of broader challenges at the intersection of personal disputes and professional reputations within the volatile domain of cryptocurrency.
As BTC prices surged significantly, Powell’s efforts towards business operations are critical for Kraken鈥檚 success. Looking ahead, he aims to continue legal action in hopes of illustrating that the accusations he faced were entirely false, and his release from criminal suspicion signifies a step towards rebuilding both personal and corporate trust.
