Kraken's Founder Cleared: Department of Justice Abandons Inquiry, Restores Seized Equipment
Jesse Powell, the founder of the cryptocurrency exchange Kraken, has received a declination letter from the Department of Justice (DoJ) confirming the end of the investigation into allegations of hacking and cyber-stalking related to the arts non-profit organisation, Verge, that he established in 2008.
The investigation, which began in 2023 following Verge's accusations, was sparked by media coverage of a raid on Powell's home. However, the DoJ's conclusion marks the absence of any evidence of criminal wrongdoing against Powell in relation to Kraken or any alleged hacking or cyber-stalking activities.
According to Fortune, legal documents filed by Powell reveal that the conflict revolved around access to various digital accounts, such as Slack and Google, rather than any nefarious activities. The DoJ's decision to drop the investigation is expected to clear a path for future operations for both Kraken and Powell's involvement with Verge.
Powell's attorney, Brandon Fox, stated that the letter from the DoJ was sought to help mitigate the damage inflicted on Powell's reputation and Kraken's operations within the financial sector. Despite the legal battles, Powell is moving forward with his civil lawsuit against Verge's board members.
In the civil lawsuit, Powell contends that he was wrongfully removed from the board and that executives conspired to create new accounts and domain names without his consent. He also alleges that Verge executives schemed to push him out and obstructed discovery by withholding key documents, including from board member and Verge lawyer Phil Cunningham.
Verge continues to play an active role in Sacramento's arts community, with Powell having invested over $1 million in support. The specific conspiracy details Powell cited included that after his 2022 removal from the board amid a management dispute, Verge quietly took control of digital assets (domain and accounts) to exclude him. This was the basis of his civil lawsuit against Verge board members.
It is important to note that the DoJ's conclusion does not mean the resolution of all legal proceedings involving Powell. The investigation into Jesse Powell's involvement with Verge has been resolved, but further legal proceedings may still be ongoing in the civil lawsuit against Verge.
[1] Source: New York Times [2] Source: Fortune [3] Source: CoinDesk
Cryptocurrency exchange Kraken's founder, Jesse Powell, can now focus on future operations in the financial sector without the hanging suspicion of hacking or cyber-stalking, as the Department of Justice (DoJ) has confirmed the end of their investigation related to his arts non-profit organization, Verge. The DoJ's decision not to pursue criminal charges against Powell in relation to Kraken or any alleged unlawful activities is expected to clear a path for his continued involvement in the business and finance world.
