TLDR
- The FBI has officially ended its two-year investigation into Kraken founder Jesse Powell.
- The investigation was unrelated to cryptocurrency and focused on a dispute with the non-profit Verge.
- Authorities raided Powell’s home in 2023 and seized multiple digital devices.
- The Justice Department returned all seized items after finding no evidence of wrongdoing.
- Powell denied all allegations and claimed Verge removed him from its board without proper notice.
Federal authorities have concluded their two-year probe into Jesse Powell, the founder of Kraken, without filing charges. The FBI began investigating Powell in 2023 over allegations unrelated to cryptocurrency, focusing instead on internal issues with a non-profit. The Justice Department has officially ended the inquiry and returned all electronic devices seized during the investigation.
Investigation Unrelated to Kraken or Cryptocurrencies
The FBI’s probe focused on Powell’s management dispute with Verge Center for the Arts, a non-profit organization he founded. The dispute centered around internal conflicts and access to digital accounts rather than financial misconduct or crypto activities. Although the FBI raided Powell’s home, they found no evidence to support criminal charges.
Federal agents seized laptops and phones but did not find anything linking Powell to criminal cyber activity. The devices reportedly contained data supporting Powell’s account of the events surrounding Verge. Authorities have now returned the devices, signaling the formal closure of the case.
The disagreement between Powell and Verge escalated after Verge allegedly attempted to remove Powell from its board. Powell responded by filing a civil suit in 2023, claiming he was wrongfully ousted without notice. He also denied all accusations of stalking or unauthorized access.
Seized Devices Returned Following DOJ Decision
The Department of Justice confirmed it has ended its investigation and closed the case without proceeding to prosecution. The decision followed a detailed review of the seized digital devices, which aligned with Powell’s previous claims. The return of the electronics marks the end of a long legal dispute.
Kraken, however, remained unaffected by the situation throughout the investigation into its founder. Despite the legal cloud over Powell, Kraken continued business as usual without regulatory interference. The company maintained its operations, product launches, and expansion plans during the process.
It is still unclear whether the FBI found any cryptocurrency in the seized devices, as that was never the investigation’s focus. Bitcoin prices have surged since the raid, but those assets were not central to the case. Kraken’s crypto exchange activities were never part of the federal inquiry.
Kraken Maintains Growth and IPO Aspirations
Kraken has pressed ahead with innovation and platform upgrades while aiming for a future public listing. The crypto exchange recently expanded its tokenized equities offering to Binance Chain, enabling broader blockchain accessibility. This move underscores Kraken’s strategy to grow across multiple chains.
Company operations have continued without disruption, even while its founder faced intense federal scrutiny. Kraken has kept launching new services, preserving market trust through consistent development. Its global presence has remained intact, and user activity has seen steady growth.
The exchange remains focused on strengthening its infrastructure and diversifying services across regions. Kraken’s pursuit of an IPO reflects confidence in its long-term vision despite the founder’s legal distractions.
