The investigation was unrelated to Kraken, but could have still impacted the cryptocurrency exchange
The FBI has officially concluded its investigation into Jesse Powell, the co-founder of cryptocurrency exchange Kraken, without filing any charges. The investigation, unrelated to his work at Kraken, focused on allegations of cyber activities connected to the Verge Center for the Arts, a nonprofit Powell co-founded in Sacramento in 2008.
The investigation stemmed from claims that Powell had accessed digital accounts tied to the Verge Center, specifically accusing him of preventing staff from accessing internal communications. The FBI raided Powell’s home in Brentwood, Los Angeles, in March 2022, seizing multiple devices, including laptops and phones. However, the US Department of Justice (DOJ) has since returned all of the seized equipment, signaling the end of the inquiry.
Powell has consistently denied the allegations, asserting that he was locked out of the nonprofit’s internal systems due to a management dispute. He claims that the Verge board members conspired to remove him and transitioned the organization to new digital accounts without informing him. Powell has filed a civil lawsuit against these board members, accusing them of defamation and withholding key documents during legal proceedings.
The lawsuit also points to alleged misconduct by Verge’s legal counsel, Phil Cunningham, though Cunningham has not commented on the matter.
Despite the closure of the FBI investigation, Powell’s civil case against the Verge board members is ongoing. He is seeking damages for reputational harm and continues to assert his innocence, with the returned devices supporting his version of events. Powell has expressed frustration over the FBI raid, calling it personally and professionally damaging. His legal team also raised concerns about how information regarding the investigation was leaked to the media.
The case has sparked attention in the cryptocurrency community, but Powell remains committed to clearing his name in court. Meanwhile, the Verge Center for the Arts remains operational, with Powell continuing to support it financially and with technical assistance.
