FBI Ends Investigation Into Kraken Founder Jesse Powell: Report

By Mat Di Salvo

The U.S. Department of Justice has dropped an investigation into Jesse Powell, the co-founder of crypto exchange Kraken, he said Tuesday.

Powell acknowledged the news on X, writing: "Very glad to have this behind me."

The New York Times in 2023 originally broke the news that FBI agents had raided the crypto entrepreneur's Los Angeles house over claims that he hacked and cyber-stalked his own nonprofit arts group.

Fortune on Tuesday first reported that the investigation had been dropped, noting that "dozens" of laptops and phones were returned to Powell in the process.

"Wild how quickly you can have your life upended," Powell wrote on X. "I'm grateful for those who saw through it and for my stellar legal team.”

"It never made sense but neither does the [Roman Storm] trial," he added, referring to the currently ongoing trial of the Tornado Cash developer.

Neither Kraken nor the DOJ immediately responded to Decrypt's questions.

The NYT originally reported that feds were investigating Powell over claims he had interfered with the computer systems of the Verge Center for the Arts—which he founded—and blocked access to emails. Powell was Kraken CEO at the time. 

The investigation came at a time when U.S. authorities were cracking down hard on the crypto space.

During Democratic President Joe Biden's tenure, the Securities and Exchange Commission hit a number of top crypto companies with lawsuits—including Kraken. 

The San Francisco, California-based exchange ended up paying a $30 million settlement to the regulator in 2023. 

Many lawsuits have now been scrapped since crypto-friendly President Donald Trump became leader. The Republican campaigned to help the industry and received financial backing from industry heavyweights like Kraken, with Powell himself pledging $1 million to Trump's campaign.

Editor's note: This story was updated after publication to clarify the description of the $30 million paid to the SEC.

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