Emerging reports indicate that the Federal Bureau of Investigation (FBI) has abandoned its investigation against the founder of US-based cryptocurrency exchange Kraken. Jesse Powell has been within the cross-hairs of the FBI over a matter unrelated to cryptocurrencies for nearly two years.
FBI Ends Kraken Founder Investigation
According to a Fortune report, the FBI is moving on from a two-year investigation on Jesse Powell, extending the streak of changing stances by US law enforcement agencies toward the cryptocurrency sector. However, the investigation has little to do with cryptocurrencies but revolved around a management dispute with Verge, an arts non-profit founded by Powell.
Back in 2023, the Kraken founder came under fire for allegedly hacking and cyberstalking Verge over a management dispute involving key executives. Events reached a crescendo after US authorities raided Powell’s home and seized dozens of cellphones and laptops as part of their investigations.
Last year, Powell filed a civil case against Verge with fresh facts emerging that the parties bickered over access to Slack and Google accounts. At the time, Powell disclosed in his filing that he did not stalk or limit access to accounts, alleging that Verge’s executive moved to remove him from the board without proper notice.
Now, the Justice Department has shuttered its investigation and returned the seized devices to Powell. Furthermore, a filing indicates that the devices contain proof that Powell’s version of events is accurate.
“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 Arts baseless accusation against me.”
It is unclear if the devices seized at the time of the raid contained any Bitcoin or other cryptocurrencies. At the time of the raid, the top cryptocurrency traded around $23,000, but Bitcoin has set new ATHs, trading at nearly $120,000.
Despite the investigation, Kraken has continued to unveil new product innovations while targeting an IPO. The US exchange has expanded its tokenized US equities offering to Binance Chain, extending multi-chain access.
Aliyu Pokima
Aliyu Pokima is a seasoned cryptocurrency and emerging technologies journalist with a knack for covering needle-moving stories in the space. Aliyu delivers breaking news stories, regulatory updates, and insightful analysis with depth and precision. When he’s not poring over charts or following leads, Aliyu enjoys playing the bass guitar, lifting weights and running marathons.
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