The U.S. Federal Bureau of Investigation has concluded its investigation into Jesse Powell, co-founder of cryptocurrency exchange Kraken. The probe, unrelated to his role at Kraken, focused on Powell’s alleged cyber activities involving a nonprofit arts organization he helped establish.
FBI Drops Jesse Powell Probe, Returns Seized Devices
According to a Fortune report, the Department of Justice ended the criminal investigation without filing any charges. The case centered on claims that Powell accessed digital accounts linked to the Verge Center for the Arts, a Sacramento-based nonprofit he co-founded in 2008.
The FBI has ended its investigation into Kraken founder Jesse Powell and returned dozens of seized devices. The case was unrelated to Kraken’s operations and stemmed from a management dispute with the nonprofit Verge. Powell plans to pursue a civil lawsuit against members of…
— Wu Blockchain (@WuBlockchain) July 22, 2025
The FBI raided Powell’s Brentwood, Los Angeles residence in March 2022. Agents seized dozens of laptops, phones, and other devices believed to hold evidence. However, the DOJ has now returned all confiscated equipment.
Federal agents acted on accusations that Powell restricted Verge staff from accessing their internal email and communication platforms. Powell has consistently denied the allegations and filed a civil defamation suit against Verge board members.
Civil Lawsuit Against Verge Board Members
Powell claims the Verge board conspired to remove him and transitioned to new digital accounts without his knowledge. He maintains that he neither hacked nor cyberstalked anyone. Court filings allege the board created a new domain and accounts, effectively locking Powell out.
In his lawsuit, Powell accuses two board members of withholding critical documents during legal discovery. One of the individuals, Phil Cunningham, also serves as Verge’s legal counsel. Cunningham declined to comment when contacted.
The civil case continues, with Powell seeking damages and reputational repair. His legal team recently received a “declination letter” from the DOJ, confirming the investigation is officially closed. Powell views this as vindication and says he remains committed to proving his innocence in court.
Fallout and Reactions
Powell expressed deep frustration over the FBI raid and the public scrutiny that followed. In a statement, he described the incident as “devastating both personally and professionally.” He further noted that the devices returned by federal authorities contain proof supporting his version of events.
While Powell did not confirm whether any cryptocurrency assets were recovered, the ordeal raised concerns in the crypto industry. His legal team also questioned how details of the investigation were leaked to the media.
Despite ongoing litigation, Verge Center for the Arts remains active in Sacramento’s art scene. Powell has previously supported the nonprofit with over $1 million in personal donations and technical aid.
The DOJ and FBI have declined to comment further on the case or the source of the media leak.
