Investigation Concluded Regarding Kraken Co-Founder, Jesse Powell, by the Department of Justice
Jesse Powell, the co-founder of cryptocurrency exchange Kraken, has been cleared of all hacking allegations related to the Verge Center for the Arts following a two-year FBI investigation that began in 2023. The FBI seized multiple electronic devices during a raid on Powell's home, investigating claims that he unlawfully accessed Verge's internal systems and blocked access to key messages.
However, federal prosecutors decided not to file any charges, and the Justice Department officially closed the investigation in July 2025 with the devices returned to Powell. Powell has consistently denied any wrongdoing, stating his access was authorized and part of an internal power struggle, not hacking.
Powell filed a civil lawsuit against the Verge board alleging defamation, wrongful removal from the board, and financial record concealment. The returned devices reportedly contain information supporting Powell’s version of events, reinforcing his claims that Verge board members conspired against him rather than him hacking or sabotaging accounts.
The US Justice Department has dropped its criminal investigation into Powell, marking the end of a long and tumultuous period for the Kraken co-founder. Coinbase CEO Brian Armstrong called the investigation "baseless," while Changpeng "CZ" Zhao of Binance remarked that it "must be a tough few years" for Powell.
Despite being cleared of criminal charges, Powell plans to continue pursuing civil action against Verge. Kraken, on the other hand, is considering a potential IPO by early 2026.
References: [1] The Block [2] CoinDesk [3] Decrypt [4] Bloomberg
- Jesse Powell, having been cleared of criminal allegations, continues his civil lawsuit against the Verge board, alleging defamation, wrongful removal, and financial record concealment.
- With Kraken exploring a potential IPO by early 2026, Powell's plans for crypto staking and technology expansion could play a significant role in the exchange's growth trajectory.
