FBI Closes Investigation Into Kraken Founder Jesse Powell, Returns Seized Devices

The Federal Bureau of Investigation (FBI) has concluded its investigation into Kraken founder Jesse Powell for allegedly hacking and cyberstalking a non-profit organization known as “Verge,” which he had founded several years ago. However, the probe had nothing to do with the exchange as it plans to go public.

According to a recent Fortune report, the Justice Department has returned all seized devices, including dozens of laptops and cellphones confiscated from Powell’s home. The agency disclosed that these devices hold evidence concerning Verge that supports Powell’s version of events.

“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 Arts baseless accusations against me.  I knew that I had done nothing wrong, and discovery in my defamation case against Verge has shown this is undeniable,” Powell said.

Powell Denies All Allegations

Following the accusations, Powell denied any involvement in hacking, stalking, or restricting access to accounts. According to him, members of the non-profit organization deliberately excluded him from board membership, having already arranged for alternative digital infrastructure and communication platforms. 

Additionally, Powell, who lived in Sacramento for years, founded Verge in 2008 to promote the local arts scene. Sacramento is the capital city of the U.S. state of California. Despite the legal disputes, the institution continues to operate as a recognized contributor to the arts sector in the region. 

When Donations Aren’t Enough

Powell also accused two Verge board members of withholding critical files during discovery. The accusation becomes even more serious considering that one of those individuals, Phil Cunningham, is not just a board member but also the organization’s legal representative. 

All of these circumstances came as a shock to the Kraken founder, who had backed the non-profit for years, including contributing to the organization through tech support and making personal donations exceeding $1 million.  

Meanwhile, the platform’s executive did not reveal whether he recovered BTC or any crypto asset. When the agency seized his devices, the price of BTC was at $23,000. However, BTC’s value has surpassed $121,000. According to data from CoinGecko, the asset is trading at $118,600, down from its ATH.