DOJ Concludes Two-Year Investigation Regarding Kraken Founder
The long-running federal investigation into Jesse Powell, the co-founder of cryptocurrency exchange Kraken, has come to a close, with the U.S. Department of Justice (DOJ) confirming that it has ended its probe without filing any charges. The investigation, which began in 2023 and concluded in 2025, centred on allegations that Powell had accessed digital systems of the Verge Center for the Arts, a nonprofit he founded in 2007, without authorization during a dispute with the organization's board.
The investigation was sparked by concerns that some of the seized devices might hold digital assets or sensitive data. However, the return of these devices to Powell's legal team suggests that the case may not have been based on substantial evidence against him. The DOJ's decision not to proceed further is further confirmed by the receipt of a declination letter from Powell's attorney, Brandon Fox.
The investigation was primarily focused on allegations of hacking and cyberstalking, which Powell consistently denied. He stated that the raid on his home, during which electronic devices such as phones and laptops were seized, was premised on baseless accusations against him from the Verge Center for the Arts. Powell believes that discovery in his defamation case against the organization has shown his innocence.
In a statement, Powell expressed that the FBI's raid on his house was devastating, both personally and professionally. He also noted that the returned devices hold evidence supporting his side of the story. The legal saga that started with the raid nearly two years ago has come to an end.
It is worth noting that the investigation was unrelated to Kraken, the cryptocurrency exchange co-founded by Powell. The ongoing defamation case against the Verge Center for the Arts is a separate legal matter.
Powell claimed that the accusations were false and driven by internal conflicts within the nonprofit. He maintained his innocence throughout the investigation, stating that he had always acted with integrity and in the best interests of the Verge Center for the Arts.
This week's court filings show that all confiscated devices have now been returned to Powell, marking the official end of the DOJ's investigation. The dispute surrounding Powell and the Verge Center for the Arts, which was central to the investigation, remains a topic of ongoing discussion and legal proceedings.
The investigation into Jesse Powell, despite initially revolving around allegations of hacking and cyberstalking in relation to the Verge Center for the Arts, did not find sufficient evidence to charge him. The returned devices, holding potential evidence supporting Powell's side, further corroborate the DOJ's decision not to proceed further. Despite the investigation's conclusion, the dispute with the Verge Center for the Arts, involving claims of false accusations and internal conflicts, persists as a topic of general-news discussion and ongoing legal proceedings. The investigation, unrelated to Kraken, the fintech company co-founded by Powell, highlights the intersection of crime-and-justice, technology, and finance in the broader industry landscape.
