FBI Ends Probe Into Kraken Founder Jesse Powell

The probe’s closure came as a relief to Powell and Kraken, emphasizing the importance of separating his personal disputes from professional endeavors.

The FBI investigation into Jesse Powell was centered on allegations of hacking and cyberstalking, linked to an internal issue at the Verge Center for the Arts. Although the FBI raided Powell’s home, they found no criminal conduct.

“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 Arts baseless accusations against me. I knew that I had done nothing wrong, and discovery in my defamation case against Verge has shown this is undeniable.” – Jesse Powell, Co-founder, Kraken and Verge Center for the Arts

Jesse Powell is pivotal in the crypto sector, known for co-founding Kraken. The probe initiated after Verge Center for the Arts accused him of misconduct, unsupported by evidence. His attorney, Brandon Fox, highlighted the closure of the investigation as important for restoring Powell’s reputation.

The closure of the investigation had no impact on Kraken, customer funds, or cryptocurrencies like ETH and BTC. Devices, including laptops and phones, seized during the investigation, have been returned. Answers from major regulatory bodies, like the SEC or CFTC, are absent.

Financial repercussions are negligible due to clarified charges. Powell’s role in the industry remains significant, given his substantial political donations. Kraken’s operations continue unaffected, corroborated by the absence of market volatility or decline in asset values.

Regulatory outcomes remain unchanged with Kraken’s processes intact. Continuing regulatory compliance takes precedence, as seen in past coverage when the SEC dropped unrelated charges against Kraken. Jesse Powell’s legal pursuits against the nonprofit board proceed, untangling further claims.