DOJ Closes Investigation Into Kraken Co-Founder Jesse Powell

The US Justice Division has dropped its felony investigation into Kraken co-founder Jesse Powell. The investigation was launched in 2023 and didn’t deal with Powell’s crypto dealings.

As an alternative, it centered on allegations from the Verge Middle for the Arts – a nonprofit he based – that he had hacked its accounts and blocked e-mail entry throughout a governance dispute.

Kraken Founder Cleared After FBI Raid

The FBI’s raid on the previous chief government’s Los Angeles house resulted within the seizure of dozens of units. It drew consideration resulting from his prominence in crypto and the broader crackdown on the sector in the course of the Biden administration.

Newly filed court docket paperwork confirm that prosecutors knowledgeable Powell’s authorized crew in April that they might not pursue expenses. Additionally they returned the seized electronics, which Powell claims include proof supporting his place that Verge board members conspired to take away him unlawfully.

Powell, who stepped down as Kraken’s CEO in 2022 however stays on its board, described the raid as “devastating” and revealed plans to proceed pursuing civil motion in opposition to Verge. He additionally accused its management of defamation and withholding paperwork. The dropped case arrives as Kraken weighs a possible IPO by early 2026. The crypto change had settled with the SEC final 12 months over its staking companies for $30 million.

On X, Powell famous,

“Very glad to have this behind me. It by no means made sense, however neither does the Roman Storm trial. Wild how shortly you possibly can have your life upended. I’m grateful for individuals who noticed via it and for my stellar authorized crew. Now, turning my consideration again to Kraken.”

Trade Voices Help Jesse Powell

Trade leaders swiftly welcomed the tip of the Justice Division’s probe into the Kraken co-founder. Coinbase CEO Brian Armstrong, for one, called the investigation “baseless” whereas noting Powell’s contributions to the sector. He added that whereas the regulatory panorama nonetheless wants enchancment, selections like this signify progress in cleansing up “previous lawfare.”

Casa co-founder Jameson Lopp echoed the sentiment and mentioned that the “baseless persecution” of Powell was “lastly over.” In the meantime, Binance’s Changpeng “CZ” Zhao remarked that it “should be a troublesome few years” for Powell, and acknowledged the toll of the method earlier than including it was “good to see all the things is cleared.”