US DoJ Halts Inquiry Into Kraken Founder Jesse Powell
The U.S. Department of Justice (DoJ) has formally concluded its inquiry into Jesse Powell, co-founder of Kraken, following accusations related to the hacking of a nonprofit organization. The investigation, which had no connection to Kraken’s business activities, ended without any charges, and Powell had his confiscated devices returned earlier this year.
The inquiry, initiated in 2023, focused on allegations that Powell hacked the Verge Center for the Arts, a Sacramento nonprofit he helped establish. The DoJ’s ruling, finalized in April 2024 and confirmed in June, permitted Powell to seek legal recourse against his accusers.
Timeline of Investigation and Allegations Against U.S. Kraken Co-Founder
The investigation surrounding Jesse Powell commenced in 2023 after the Verge Center for the Arts, a nonprofit he co-founded, accused him of infiltrating its computer system. Powell had been ousted from Verge’s board in 2022 due to a management dispute, and the organization claimed he restricted employee access to emails, websites, and internal communication channels.
#FBI conducts a raid on former Kraken CEO Jesse Powell’s residence in connection with a #cyber stalking investigation involving Verge Center for the Arts.#Cryptocurency #CryptoNews @jespow pic.twitter.com/2NilTnivn2
— Crypto Luster (@CryptoLstr) July 8, 2023
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These accusations prompted an FBI raid on Powell’s home in Los Angeles in 2023, where computers, laptops, and mobile devices were taken.
Despite thorough investigations, federal prosecutors determined in April 2024 that no evidence of criminal wrongdoing was found. The U.S. Attorney’s Office issued a “declination letter” in June 2024, officially shutting down the case and permitting the return of the seized devices belonging to the Kraken co-founder.
Leading media outlets reported that the investigation was not linked to Kraken’s operations and was solely connected to Powell’s conflict with Verge’s leadership. Powell, who has contributed over $1 million to the nonprofit, asserts that the allegations were baseless and part of a scheme against him.
BREAKING: FBI closes investigation into Kraken founder Jesse Powell and returns confiscated devices. pic.twitter.com/gnDLfse1qr
— Cointelegraph (@Cointelegraph) July 22, 2025
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The conclusion of the case was a relief for Powell, who has indicated that the investigation harmed his and Kraken’s reputation. The timeframe from 2022 to mid-2025 underscores the extended nature of the allegations.
Now, Jesse Powell is concentrating on restoring his name through civil litigation against the members of Verge’s board.
Consequences for Powell and Kraken
The resolution of the DoJ’s inquiry represents a significant development for Powell. He is dedicated to moving forward with civil lawsuits to counter the allegations. Powell’s legal counsel underscored that the declination letter was crucial for rehabilitating Powell’s reputation.
This outcome also influenced Kraken’s standing within the fluctuating trading market. Although the case did not directly involve Kraken, public sentiment and perception were impacted. Powell has categorically denied all allegations and seeks accountability from those he believes libeled him.
The case was not related to Kraken or digital currency but arose from a conflict with a nonprofit he established.
His confiscated devices have been returned, and Powell is now proceeding with his defamation lawsuit.#Kraken #JessePowell pic.twitter.com/4peVHdgIkh
— CRYPTOMOJO_TA (@CRYPTOMOJO_TA) July 22, 2025
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The legal conflict highlights the intricate relationship between personal disputes and professional standing in the digital currency industry. Powell asserts that the allegations damaged his reputation during a significant period of crypto advancement.
With Bitcoin ▼-0.43% prices surging from around $23,000 in 2023 to roughly $120,000 in mid-2025, Powell’s focus on business operations has been vital for Kraken’s ongoing success.
Looking ahead, Powell intends to pursue legal measures against Verge’s board members to demonstrate that the allegations were untrue. The closure of the investigation clears him of any criminal implications and provides him with the impetus to restore public confidence and enhance Kraken’s reputation.
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Key Takeaways
The post US DoJ Closes Investigation Into Kraken Founder Jesse Powell appeared first on 99Bitcoins.
