FBI Drops Investigation Into Kraken Founder Jesse Powell

Emre Yumlu — Tue, 22 Jul 2025 15:10:40 +0000

Jesse Powell, the well-known founder of crypto exchange Kraken, has been cleared by the U.S. Department of Justice after a lengthy investigation that began two years ago. The probe, which involved an FBI raid on Powell’s residence, was not tied to his involvement in the crypto industry but stemmed from a dispute related to an arts non-profit he had established years earlier. The government has now officially dropped the case and returned the electronic devices that were previously seized.

A Legal Battle Unrelated to Crypto Operations

The 2022 FBI raid initially caused a stir, especially after media outlets reported allegations of hacking and cyberstalking. However, as more details came to light, it became clear that the matter was not related to Kraken or any misconduct within the crypto market, but instead involved internal conflicts within a non-profit organization called Verge Center for the Arts.

Powell, who founded Verge in 2008 to support the Sacramento arts scene, became entangled in a management dispute with board members. The conflict centered around access to communication tools like Google Workspace and Slack, not malicious cyber activity. Powell has consistently denied any wrongdoing.

Devices Returned, Evidence Supports Powell’s Claims

In recent court filings, Powell revealed that the Justice Department has closed the investigation and returned dozens of devices, including laptops and smartphones. According to Powell, the data on these devices backs his version of the story and further discredits the accusations made against him.

Describing the ordeal as “personally and professionally devastating,” Powell expressed relief that the case had come to an end. “It’s still shocking that the raid was based on unfounded claims from Verge. I knew I had done nothing wrong, and the evidence proves it,” he stated.

Civil Lawsuit Against Non-Profit Board Continues

Despite the closure of the criminal investigation, Powell is moving forward with a civil defamation lawsuit against members of the Verge board. He claims that two individuals failed to hand over crucial documents during the legal discovery phase. One of them, Phil Cunningham, also serves as legal counsel for Verge but has declined to comment on the matter.

Reputational Impact on Kraken and the Crypto Sector

Brandon Fox, Powell’s attorney, confirmed receipt of an official “declination letter” from the Department of Justice, formally stating that the case is closed. This document plays a vital role in protecting Powell’s reputation and ensuring that Kraken, a platform aiming to go public, remains compliant with financial regulations.

However, lingering concerns remain about how details of the federal investigation were leaked to journalists. The Justice Department has not provided clarity on how this information reached the press.

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The post FBI Drops Investigation Into Kraken Founder Jesse Powell appeared first on Coin Engineer.

Jesse Powell’s $1M Ether Donation to Trump Campaign

Tanju Akbıyık — Fri, 28 Jun 2024 13:00:55 +0000

Co-founder of Kraken Jesse Powell has revealed on X personally contributing $1 million, largely in Ether, to Donald Trump’s 2024 Presidential campaign.

Jesse Powell underlined his support of Trump as the only major party candidate now pushing for pro-crypto laws.

“I am thrilled to be joining other leaders from our community to unite behind the only pro-crypto major party candidate in the 2024 Presidential election so the United States may keep leading in blockchain technology.”

In the piece Jesse Powell attacked the regulatory attitude of present Joe Biden’s government toward the crypto sector.

Jesse Powell charges authorities like Elizabeth Warren and Securities and Exchange Commission (SEC) Chair Gary Gensler of lowering United States (U.S.) competitiveness.

“For too long, the crypto industry has been under attack by Elizabeth Warren, Gary Gensler and others.”