- FBI raid on Kraken founder ends with no charges filed.
- Nonprofit dispute, not crypto, triggered lengthy federal investigation into Powell.
- DOJ returns devices, quietly closes case without commenting on leaks.
Jesse Powell, the founder of cryptocurrency exchange Kraken, is no longer under federal investigation following a high-profile raid on his home. The U.S. Department of Justice has officially closed the case, issuing a declination letter and confirming that no charges will be filed.
Public attention increased when FBI agents entered Powell’s home and seized dozens of electronic devices. Although mainstream media initially reported on a grave criminal issue, the case had nothing to do with Kraken and was based on a conflict with a nonprofit organization that Powell had started many years ago.
Founded by Powell in 2008, the Verge Center for the Arts in Sacramento was at the center of the dispute. Powell was initially accused of hacking and cyberstalking. However, as court documents subsequently revealed, the matter concerned access to the nonprofit organization to digital platforms, such as Slack and Google accounts.
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Powell has strenuously stated they did not sever the right to access or behave unethically. He blames two former board members for trying to control the organization over his head. His confrontation has since been the basis of a civil suit by Powell against him that continues today in a state courtroom.
It took two years of review by the federal prosecutors to dismiss the case without charges. Police had seized personal and professional gadgets belonging to Powell but have handed them back to their owner, whose attorneys argue have data proving his innocence.
The staff sought the declination letter to clear Powell’s name and assist in rebuilding his tarnished reputation.
Fallout From Raid Fuels Scrutiny Over DOJ and Media Conduct
The fallout from the raid created major complications for Powell. It added pressure to his leadership role and stirred speculation just as Kraken continues to navigate regulatory pathways toward a potential public listing.
His attorneys complained that information about the sealed probe has found its way into national news outlets. The Justice Department has not commented on the origin of the leaks, which added to confusion among the general populace as to the nature of the case.
Though the criminal investigation has been abandoned, Powell is still engaged in a legal conflict with Verge’s existing leaders. He still states that he was driven out of the nonprofit due to internal politics but not because of his improper action.
Although the Justice Department’s ruling absolved Powell of any criminal offense, the events following the FBI raid and the leakage of materials still evoke some concerns. The incident highlights tensions between law enforcement tactics and public accountability.
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