FBI Drops Criminal Probe Into Kraken Founder Jesse Powell

Federal authorities have officially closed the criminal investigation into Jesse Powell, the co-founder and former CEO of the popular cryptocurrency exchange Kraken. The investigation was initiated in 2023 following allegations from the non-profit organization Verge Center for the Arts that Powell had hacked their computer systems and obstructed access to emails. Last year, Powell’s home was searched and electronic devices were seized as part of the FBI’s probe.

According to reports from the New York Times, federal prosecutors recently informed Powell’s attorney, Brandon Fox, that they have concluded their investigation into the Verge allegations and have decided not to pursue criminal charges against Powell. Documents filed to the Superior Court of the State of California confirmed this development, with prosecutors also indicating that they would be returning the seized devices to Powell.

In a statement following the closure of the investigation, Powell expressed his relief and frustration over the ordeal, stating, “The FBI’s raid on my house was devastating both personally and professionally. It is still shocking that the raid was premised on Verge Center for the Art’s baseless accusations against me. I will continue to pursue the appropriate legal remedies against those who created this disaster by making false statements to law enforcement.”

Despite stepping down as CEO in 2023, Powell remains on the board of directors at Kraken. The exchange is currently considering the possibility of an initial public offering by the first quarter of 2026. Kraken is known as one of the largest U.S.-based cryptocurrency exchanges and has faced increased regulatory scrutiny in recent years. In 2023, the company settled with the Securities and Exchange Commission and discontinued its U.S. staking services.

The closure of the investigation marks a significant development for Powell and Kraken as they navigate the evolving landscape of the cryptocurrency industry. As they move forward, Powell and the exchange will continue to address challenges and opportunities in the market while upholding their commitment to compliance and transparency.

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