The FBI ended its investigation into Jesse Powell over
alleged hacking of a nonprofit. Powell faces no criminal charges, and the devices seized have reportedly been returned.
According to Fortune report, the FBI has officially closed its criminal
investigation into Jesse Powell, co-founder of cryptocurrency exchange Kraken,
and returned devices seized during a 2023 search. Powell faced allegations of
hacking the Verge Center for the Arts, a nonprofit he helped found, but federal
prosecutors decided not to press charges.
The Investigation and Its Alarming Beginnings
In 2023, the FBI launched an investigation into Powell
following accusations by the Verge Center for the Arts, a nonprofit he helped
found. The nonprofit alleged Powell hacked its computer accounts and blocked
access to key emails. As part of the inquiry, federal agents searched Powell’s
home and seized electronic devices, including laptops and phones.
The Justice Department dropped its probe into Kraken co-founder Jesse PowellGood scoop @jeffjohnroberts 🔥 pic.twitter.com/FiPssoGtO0
— Katherine Ross (@byKatherineRoss) July 22, 2025
Despite the seriousness of the allegations, court
documents and statements from Powell’s attorney later revealed that the
investigation focused solely on Powell’s relationship with the nonprofit and
was not connected to his role at Kraken. Prosecutors confirmed they would not file criminal
charges and would return all confiscated devices.
Legal and Regulatory Context
Powell stepped down as Kraken’s CEO in 2023 but
remains involved as a board member. Kraken has faced its own challenges with
U.S. regulators. The Securities and Exchange Commission (SEC) filed a complaint
accusing the exchange of operating without proper registration, but later
dropped the case and settled regulatory claims. These regulatory issues were
separate from the FBI’s investigation into Powell.
More from Kraken: Following NinjaTrader Acquisition, Kraken Opens Access to CME-Listed Crypto Futures
Powell’s political activity, including a $1 million
crypto donation to former President Donald Trump’s 2024 campaign, drew
attention amidst changing leadership at the DOJ and FBI. Still, officials have not
linked this to the probe’s conclusion.
Powell has reportedly filed a civil lawsuit against Verge Center’s board members, claiming they made false statements that led to the
FBI investigation. Meanwhile, Kraken is reportedly preparing for a possible
initial public offering as early as 2026, aiming to strengthen its market
position after years of regulatory scrutiny.
This article was written by Jared Kirui at www.financemagnates.com.
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