Federal authorities have dropped a criminal investigation by Jesse Powell, co -founder and former CEO of Cryptocurrency Exchange Kraken.
The FBI investigation, which began in 2023, looked at the non-profit Verge Center for The Arts’ claims that Powell hacked its computer accounts and prevented access to emails. His home was also searched when the study began and computers, laptops and mobile phones were seized at the time, the New York Times reported last year.
In April of this year, federal prosecutors Powell’s lawyer Brandon Fox stated that the government had completed its investigation of the Verge depletions, and criminal charges against Powell were not brought to Powell, which was filed with the Superior Court for the state of California on Monday. Prosecutors also said at the time they would return the devices they had seized from Powell’s home, Fox said.
On June 9, his lawyer later received a letter from the US Law Office of the Northern District of California, confirming that the federal government had completed this investigation on April 8 this year. Fox initially asked for this letter to be sent to Powell.
“The FBI’s raid on my house destroyed both personally and professionally. It’s still shocking that the raid was provided at the Verge Center for The Art’s baseless accusations against me,” Powell said in a statement.
“I will continue to pursue the relevant legal remedies against those who created this disaster by making false declarations for law enforcement,” he added.
The closure of the case comes as Kraken weighs the possibility of an initial public offering in the first quarter of 2026. Powell withdrew as Exchange’s CEO in 2023, according to his LinkedIn, but remains on its board.
Kraken is still one of the largest US-based crypto boards and has been the goal of increased regulatory control in recent years. In 2023, it settled with Securities and Exchange Commission and closed its American stakeing services.
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