Federal Authorities Close Criminal Investigation into Kraken Co-Founder Jesse Powell
Federal authorities have officially closed a criminal investigation into Jesse Powell, the co-founder and former CEO of cryptocurrency exchange Kraken. The investigation, which began in 2023, was initiated based on allegations from the non-profit Verge Center for the Arts, accusing Powell of hacking into their computer accounts and obstructing access to emails. Last year, Powell’s home was raided, and electronic devices were seized for further investigation.
Investigation Conclusion
In a recent development, federal prosecutors informed Powell’s attorney that the government had concluded its investigation into the Verge allegations and decided not to bring any criminal charges against him. Documents filed to the Superior Court of the State of California confirmed this decision, also stating that the seized devices would be returned to Powell. The U.S. Attorney’s Office for the Northern District of California officially closed the investigation on April 8 of this year.
Powell’s Response
Upon learning about the closure of the case, Powell expressed his relief and frustration over the ordeal. He stated, “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.” Powell vowed to pursue legal action against those responsible for the false accusations.
Future Plans for Kraken
The closure of the investigation comes at a crucial time for Kraken as the exchange considers the possibility of an initial public offering by the first quarter of 2026. While Powell stepped down as CEO in 2023, he continues to serve on the board of directors. Kraken remains one of the largest U.S.-based crypto exchanges, despite facing increased regulatory scrutiny in recent years. In 2023, the exchange settled with the Securities and Exchange Commission and ceased its U.S. staking services.
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