U.S. Department of Justice Ends Nonprofit Probe Into Crypto Executive
The U.S. Department of Justice (DOJ) has officially ended its investigation into Kraken co-founder Jesse Powell, clearing him of allegations related to a nonprofit arts organization. The decision brings relief after a year-long probe that had raised questions about the crypto veteran’s personal and professional standing.
The DOJ had been investigating Powell over claims he hacked and cyber-stalked a nonprofit arts group, but no charges were filed.
Powell’s Home Searched in 2023, Devices Seized
The investigation dates back to 2023, when federal authorities searched Powell’s Los Angeles residence and confiscated electronic devices. According to reports at the time, the nonprofit group Verge Center for the Arts accused Powell of unauthorized access to internal communications and accounts.
The nonprofit alleged Powell blocked access to email systems and internal messages as part of a boardroom dispute.
Powell has consistently denied any wrongdoing, asserting that the accusations were part of an internal conflict at the organization, where he once served as a board member.
Powell Responds: “Devastating Personally and Professionally”
Following the DOJ’s decision, Powell issued a statement expressing the toll the investigation had taken:
“The FBI raid was devastating both personally and professionally,” he said, reaffirming that he never engaged in hacking or stalking behavior.
Powell’s legal team and supporters maintained throughout the process that the probe had no connection to Kraken or its business operations. A spokesperson for Kraken confirmed in 2023 that the investigation was focused entirely on Powell’s personal affairs.
No Impact on Kraken Operations or Crypto Regulatory Actions
Powell stepped down as Kraken’s CEO in 2022 but remains the chair of the board of directors. The DOJ’s conclusion comes amid a broader regulatory crackdown on crypto platforms, including lawsuits over alleged securities violations.
Importantly, the DOJ clarified that the probe into Powell was not related to Kraken’s operations, nor does it indicate broader issues within the company.
This development marks a significant personal vindication for Powell and allows Kraken to continue operating without further legal distractions tied to its co-founder.
Disclaimer
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