FBI Closes Probe into Kraken Founder Jesse Powell, Returns Seized Devices

The US Justice Department has ended its investigation into Kraken founder Jesse Powell, returning dozens of electronic devices seized during an FBI raid in 2022. The case stemmed not from cryptocurrency-related activities but from a governance dispute at the Verge Center for the Arts, a Sacramento nonprofit Powell founded in 2008.

Initial reports suggested Powell faced allegations of hacking and cyberstalking the organization. Court filings later revealed a more mundane conflict over control of Slack and Google Workspace accounts following Powell's removal from Verge's board. Powell maintains he never restricted access and claims Verge insiders created parallel accounts to facilitate his ouster.

Prosecutors issued a declination letter confirming the case's closure. Powell's legal team sought the document to mitigate reputational damage and reassure financial institutions about Kraken's leadership stability. The founder described the raid as personally devastating, though the resolution removes a cloud of regulatory uncertainty.