Key Takeaways
- The Justice Department has ended its investigation into Kraken founder Jesse Powell and returned devices seized by the FBI.
- The dropped probe was unrelated to Kraken’s operations and centered on allegations involving Powell’s dispute with a nonprofit’s board.
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The US Department of Justice (DOJ) has closed its investigation into Jesse Powell, co-founder of the crypto exchange Kraken, over allegations tied to a dispute with the Verge Center for the Arts, an arts nonprofit he founded, Fortune reported today.
Authorities launched the investigation after allegations surfaced in early 2022 that Powell had hacked into Verge’s accounts and blocked access to key messages, claims that he strongly denied. Powell was removed from the Verge Center for the Arts’ board of directors.
In mid-2023, the FBI searched his Los Angeles residence, confiscating multiple laptops and mobile devices as part of the probe. The FBI’s raid was unrelated to Kraken’s operations.
Powell later filed a civil lawsuit against Verge’s board members, alleging they conspired to remove him from the organization and lock him out of digital accounts.
Brandon Fox, Powell’s attorney, received a declination letter from the DOJ confirming the probe’s closure. Fox indicated this development was important for restoring Powell’s reputation and Kraken’s regulatory standing.
Following the closure of the investigation, the FBI handed back the electronic devices it had confiscated from Powell’s home during the raid.
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