FBI drops probe into Kraken founder, returns seized devices

Kraken founder Jesse Powell is officially no longer under investigation over hacking allegations.

Yet another legal battle that has shaken the crypto industry has come to an end. According to a July 22 report by Fortune, the U.S. Department of Justice has officially concluded its investigation into Kraken founder Jesse Powell. Moreover, the FBI returned a dozen of his devices that it had seized earlier.

These devices were seized in 2023, in an FBI raid on Powell’s home. Unlike many other probes into crypto exchange founders, the FBI probe against Powell was not related to his business. Instead, it stemmed from allegations of cyberstalking and hacking related to his non-profit, Verge Center for the Arts.

Why Powell was investigated

According to Powell, the Verge board illegally ousted him from the organization after he donated $1 million for its operations. They also locked him out of all the non-profit’s accounts, changed the login codes to its domains, effectively removing his control over the organization.

Subsequently, the organization accused him of illegally using his admin codes to take control over the company’s website. This led to the probe over whether or not Powell illegally tried to take back control over the organization.

At the time, the raid was leaked to the New York Times, which raised concerns over the potential political motivations of the investigation. Powell is known for his unconventional political ideas due to his libertarian leanings. In 2024, Powell personally donated $1 million to then-candidate Donald Trump’s campaign.

He stressed that the crypto industry was “under attack” under the Biden administration, especially by the SEC’s Gary Gensler. At the same time, Trump made a major U-turn on crypto, which he previously called a scam. During his 2024 presidential campaign, he vowed that his administration would make the United States the “crypto capital of the world.”