FBI Drops Criminal Probe Against Kraken Co-founder Jesse Powell

Federal authorities have officially closed a criminal investigation into Jesse Powell, co-founder and former CEO of cryptocurrency exchange Kraken, concerning allegations of hacking and cyberstalking a non-profit organization he founded. The Justice Department confirmed the conclusion of the probe in April, notifying Powell's legal team and returning electronic devices seized during a 2023 raid on his home.

The investigation stemmed from a dispute with the Verge Center for the Arts in Sacramento, which Powell founded in 2007. Verge's leadership removed Powell from its board in 2022, citing violations of the organization's "guiding principles." Subsequently, Verge accused Powell of illicitly accessing and interfering with its online accounts, leading to the FBI's involvement.

Powell has consistently maintained his innocence, asserting that the accusations were baseless. In a statement, he expressed relief, stating, "The FBI’s raid on my house was devastating both personally and professionally. It is still shocking that the raid was premised on Verge Center for the Art’s baseless accusations against me." He further affirmed his intention to continue pursuing legal remedies against those he claims made false statements to law enforcement.

This development follows a period of significant public relations challenges for Powell. He stepped down as Kraken's CEO in 2022 amid controversies surrounding his outspoken views on workplace culture, including debates on pronouns, gender, and race. During that time, he offered severance packages to employees who disagreed with the company's "libertarian philosophical values," a program internally dubbed the "Jet Ski Program."

Despite these personal and professional challenges, Kraken remains a prominent U.S.-based crypto exchange, navigating an increasingly stringent regulatory landscape. The company is reportedly weighing the possibility of an initial public offering (IPO) by the first quarter of 2026, with Powell still serving on its board of directors.