The Federal Bureau of Investigation (FBI) has formally closed its two-year investigation into Kraken founder Jesse Powell, returning all seized electronic devices without filing charges. The probe, initiated in 2023, focused exclusively on Powell's management dispute with the Verge Center for the Arts—a non-profit organization he founded—and was unrelated to Kraken's cryptocurrency operations or any digital asset activities.
Federal agents raided Powell's residence in 2023, confiscating laptops and phones amid allegations of unauthorized access during his conflict with Verge. The Department of Justice confirmed no evidence supported criminal cyber activity or financial misconduct, with returned devices reportedly containing data corroborating Powell's account. Powell had consistently denied all accusations, filing a 2023 defamation lawsuit against Verge after claiming he was "wrongfully ousted from its board without proper notice."
Kraken's operations remained unaffected throughout the investigation, with no disruptions to token listings, services, or expansion plans. The exchange continued product launches, including tokenized equities on Binance Chain, and maintained its pursuit of an initial public offering. While the case closure may strengthen Kraken's regulatory reputation long-term, immediate market impact was negligible.