FBI Ends Jesse Powell Investigation After Two-Year Legal Standoff

• The FBI has ended its two-year investigation into Kraken founder Jesse Powell over a non-crypto dispute with an arts nonprofit.

• Authorities raided Powell’s home in 2023 but have returned his seized devices, which support his version of events.

• Kraken continued to grow during the investigation and is expanding its services while preparing for a possible IPO.

The Federal Bureau of Investigation (FBI) has officially closed its two-year probe into Jesse Powell, the founder of U.S.-based cryptocurrency exchange Kraken. The decision follows an investigation unrelated to the crypto industry, instead centered on a dispute involving Verge Center for the Arts, a nonprofit Powell co-founded.

The case stemmed from a 2023 accusation that Powell had engaged in hacking and cyberstalking over a management conflict with Verge executives. U.S. authorities raided Powell’s home, seizing dozens of electronic devices, including laptops and mobile phones.

Civil Dispute at Verge Sparks Federal Scrutiny

Powell later filed a civil lawsuit against Verge, revealing that the conflict involved disagreements over access to communication platforms like Slack and Google accounts. He alleged that Verge leadership attempted to remove him from the board without due process.

Despite the seriousness of the charges, none were directly linked to Kraken or its crypto operations. The Justice Department has now returned Powell’s devices and closed the case. A recent court filing indicates that the devices support Powell’s version of events.

“The FBI’s raid on my house was devastating both personally and professionally,” Powell said in a statement. “It is still shocking that the raid was premised on the Verge Center for the Arts’ baseless accusation against me.”

Kraken Presses Forward Amid Legal Closure

Kraken has continued to expand during the period of scrutiny. The exchange has rolled out new features, including tokenized U.S. equities, and extended multi-chain support by integrating with Binance Chain. These steps align with Kraken’s broader strategy as it positions itself for a potential initial public offering (IPO).

While the case caused reputational turbulence for Powell, there is no indication that the seized devices held any cryptocurrency. At the time of the FBI raid, Bitcoin was trading around $23,000. Since then, BTC has reached new highs, trading near $120,000.