DOJ Closes Investigation Into Kraken Co-Founder Jesse Powell

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

As a substitute, 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 govt’s Los Angeles dwelling resulted within the seizure of dozens of units. It drew consideration on account of his prominence in crypto and the broader crackdown on the sector in the course of the Biden administration.

Newly filed court docket paperwork verify that prosecutors knowledgeable Powell’s authorized group in April that they’d not pursue prices. 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 trade had settled with the SEC final 12 months over its staking providers 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 rapidly you may have your life upended. I’m grateful for many who noticed by means of it and for my stellar authorized group. Now, turning my consideration again to Kraken.”

Trade Voices Assist 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, referred to as 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 “have to be a tricky few years” for Powell, and acknowledged the toll of the method earlier than including it was “good to see all the pieces is cleared.”