After two years, the FBI has officially closed its investigation into Jesse Powell, the co-founder of crypto exchange Kraken. The case had nothing to do with Powell’s role in the crypto world or his company. Instead, it stemmed from a separate dispute with a nonprofit art group he co-founded in 2008, Verge Centre for the Arts.
The investigation began in 2023 following accusations that Powell had accessed Verge’s digital platforms without permission and was involved in cyberstalking. The FBI even searched Powell’s residence, seizing phones and laptops for forensic review. According to a report by Fortune, the search aimed to determine whether Powell had unlawfully accessed Verge’s email or Slack accounts.
Powell has always maintained his innocence, calling the accusations baseless and motivated by internal disagreements at Verge. At the heart of the conflict was a power struggle over administrative control, particularly access to communication platforms. Verge reportedly attempted to remove Powell from its board without prior notice, which prompted him to file a civil lawsuit, alleging that the move was illegal and lacked due process.
Now, the U.S. Department of Justice has confirmed the probe is over and that all confiscated devices have been returned. Investigators found no evidence of wrongdoing or criminal activity, effectively clearing Powell of all allegations.
Reflecting on the experience, Powell said the FBI’s raid deeply affected him both professionally and personally. He expressed disbelief that federal action had been taken based on what he believes were unfounded accusations from the nonprofit.
Importantly, Kraken and the broader crypto industry were never involved in the case. No cryptocurrencies or digital assets were implicated in the investigation, and Kraken’s operations continued without interruption. The company expanded its offerings during the investigation, including plans to go public and the addition of tokenised equities via Binance Chain.
