Jesse Powell, a well-known figure in the cryptocurrency world and co-founder of Kraken, has taken legal action against a San Francisco housing cooperative, alleging discrimination in denying his bid to purchase an apartment.
Powell claims that his political beliefs and professional background in the crypto industry led to the rejection of his application rather than any financial or logistical concerns.
The lawsuit, filed on February 5, 2025, in San Francisco’s Superior Court, challenges the decision made by the 2500 Steiner Street co-op board, alleging wrongful denial of housing and bias.
According to Powell’s legal team, the co-op board did not provide an apparent reason for the rejection. The lawsuit suggests that his political contributions and previous involvement in an FBI investigation may have influenced the board’s decision.
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Broader Implications of Housing Discrimination Based on Political Affiliation
Powell’s lawsuit brings to light concerns regarding political bias in housing approvals. His legal team argues that the board, predominantly composed of individuals with left-leaning political views, deliberately obstructed his purchase due to his financial support of specific conservative causes.
The lawsuit explicitly references Powell’s $1 million presidential campaign donation as one of its main objects of dispute.
The legal complaint focuses on Bruce Golden, who serves as both Accel partner and venture capitalist because he led the opposition toward the sale. The history of Golden’s donations to Democratic political campaigns concerns Powell’s team about his failed acquisition.
The lawsuit revealed that the co-op board prevented the sale from reaching a shareholder decision-making stage. Additional financial records submitted by Powell during his application process, along with every required criterion met, led to his application being denied at the end of November 2023.
Chronology of the Dispute and Lawsuit Filing
Powell first attempted to purchase a unit at 2500 Steiner Street in September 2023. As per the co-op’s policies, nine of the 11 non-selling members needed to approve the transaction for it to proceed.
Despite his financial stability and willingness to cooperate with board requests, the lawsuit asserts that the board deliberately prolonged the process, preventing a formal decision. Rather than officially rejecting his application transparently, they allegedly extended discussions until ultimately denying the sale without explanation.
According to Powell’s statements on X (formerly Twitter), he sought multiple resolutions before resorting to legal action. He expressed frustration over what he called exclusionary practices and pointed out that the situation negatively impacts himself and the seller, who remains unable to move forward with the transaction.
Powell also noted that such housing policies limit opportunities for potential residents and contribute to broader real estate accessibility challenges in San Francisco.
The case raises significant questions about the discretionary power of co-op boards in determining who can purchase property. If Powell’s allegations hold weight in court, it could set a precedent regarding the limits of political and industry-based discrimination in real estate transactions.
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