The FBI has concluded its criminal investigation into Jesse Powell, former CEO and co-founder of Kraken, a leading cryptocurrency exchange. The probe, initiated in 2023, centered on allegations made by the Verge Center for the Arts, a nonprofit organization, that Powell had hacked into their computer systems and blocked access to emails. As part of the investigation, Powell's home was searched, and several devices, including computers, laptops, and cellphones, were seized.
However, in April, federal prosecutors notified Powell's attorney, Brandon Fox, that the government had decided not to pursue criminal charges. Furthermore, the seized devices were to be returned to Powell. This development was confirmed in a letter sent to Powell's lawyer by the U.S. Attorney's Office for the Northern District of California on June 9, stating that the investigation was officially closed as of April 8.
Powell expressed relief and disappointment over the ordeal, stating that the raid on his home was devastating and that he intends to seek legal action against those who made false accusations against him. The closure of this case comes at a time when Kraken is considering an initial public offering, potentially by the first quarter of 2026. Despite stepping down as CEO in 2023, Powell remains a member of Kraken's board of directors.
Kraken, one of the largest U.S.-based cryptocurrency exchanges, has faced increased regulatory scrutiny, including a settlement with the Securities and Exchange Commission in 2023, which led to the shutdown of its U.S. staking services.