Federal authorities in the United States have ended their two-year investigation into Jesse Powell, co-founder of the cryptocurrency exchange Kraken. The FBI began looking into Powell in 2023 after he was accused of hacking and cyberstalking a nonprofit group called Verge Center for the Arts. Powell helped start Verge back in 2008.
It’s important to note that the case had nothing to do with cryptocurrencies or Kraken, but instead came from a disagreement between Powell and Verge itself. Powell had consistently denied the allegations and claimed the accusations were baseless.
However, the U.S. Department of Justice (DOJ) confirms that the case is now closed, and all the seized electronic devices taken from Powell have been returned to him.
According to Fortune, the FBI took laptops and phones from Powell during a search at his home. They wanted to check if Powell had done anything illegal, like breaking into Verge’s email or communication accounts. The devices were later reviewed by the DOJ, which reportedly found nothing criminal.
The Verge dispute centered around who had control of their communication platforms, like Google and Slack accounts. The report said they also tried to remove him from Verge’s board without giving him a notice. In response, Powell filed a civil suit in 2023, saying the board acted unfairly and without legal grounds.
“The FBI’s raid on my house was devastating both personally and professionally,” Powell stated. He also said it was shocking that the raid happened based on false claims by Verge.
The investigation never involved Kraken or any digital currency matters. There is no evidence that any cryptocurrency was part of the items seized during the raid.
During this time, Kraken continued its business with no issues. The exchange expanded its services and worked on plans to go public. It even added tokenized equity trading on Binance Chain during the probe.
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