Jesse Powell Cleared as FBI Drops Verge-Linked Investigation

TLDR

• FBI drops investigation into Jesse Powell after two years and returns seized devices.

• Jesse Powell’s legal dispute involved Verge, not Kraken or crypto operations.

• Returned devices allegedly support Powell’s account in ongoing civil case.

• Kraken continues IPO preparations and product expansion despite past scrutiny.

The Federal Bureau of Investigation has ended its investigation into Jesse Powell, the founder of crypto exchange Kraken. The agency returned dozens of laptops and phones that were previously seized from Powell’s home during a 2023 raid.

According to court documents and Powell’s legal team, the case was not connected to Kraken or digital asset operations. The inquiry originated from a management conflict between Powell and Verge, a nonprofit arts organization he helped establish in 2008.

In a statement to Fortune, Powell said the FBI’s actions had long-term personal and professional consequences. “The FBI’s raid on my house was devastating both personally and professionally,” said Powell. “It is still shocking that the raid was premised on Verge Center for the Arts baseless accusations against me.”

The original investigation focused on Powell’s alleged actions against Verge’s board members. In 2023, the New York Times reported the FBI was probing Powell over claims of hacking and cyberstalking related to access to Verge’s Slack and Google accounts.

Powell has since filed a civil lawsuit against members of Verge’s board. He claims they removed him from the board without proper notification and created new work accounts to block his access. The Justice Department seized his devices as part of its inquiry, though Powell maintains he committed no wrongdoing.

Documents filed in court this week state that the devices contain material that supports Powell’s version of the events. The Department of Justice has now issued a declination letter confirming that it will not pursue charges.

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Powell’s legal team claims Verge board members failed to submit key documents during the discovery process. This includes allegations against Phil Cunningham, a board member and attorney for Verge. Cunningham has declined to comment on the matter.

Powell has contributed over $1 million to Verge since its founding and provided tech support. Despite the internal dispute and ongoing litigation, Verge continues to operate as part of the Sacramento arts community.

Although the investigation has ended, Powell plans to move forward with his lawsuit to clear his name and challenge the nonprofit’s leadership actions.

Throughout the federal probe, Kraken continued to operate and introduced several new products. Recently, the exchange expanded its tokenized U.S. equities offering onto Binance Chain to support broader multichain access.

Kraken is also preparing for an initial public offering. The exchange had previously faced scrutiny from the Securities and Exchange Commission. However, that case was dropped earlier this year without prejudice following a shift in leadership at the SEC.

The conclusion of the FBI case removes a key legal burden for Powell. While he has not confirmed whether any crypto was stored on the seized devices, the raid took place when Bitcoin was valued near $23,000. The price now exceeds $120,000.

With the legal matter resolved, Powell has indicated he will now refocus on Kraken’s long-term strategic direction.