DOJ Closes Investigation Into Kraken Co-Founder Jesse Powell

The US Justice Department has dropped its criminal investigation into Kraken co-founder Jesse Powell, ending a probe that began in 2023. The investigation, unrelated to cryptocurrency, focused on allegations from the Verge Center for the Arts—a nonprofit Powell founded—accusing him of hacking its accounts during a governance dispute.

An FBI raid on Powell's Los Angeles home last year seized dozens of devices, drawing attention due to his prominence in crypto and the Biden administration's broader crackdown on the sector. Prosecutors informed Powell's legal team in April they would not pursue charges and returned the seized electronics, which Powell claims contain evidence of a conspiracy by Verge board members to remove him unlawfully.

Powell, who stepped down as Kraken's CEO in 2022 but remains on its board, called the raid "devastating" and plans to pursue civil action against Verge for defamation and document withholding. The resolution comes as Kraken eyes a potential IPO by early 2026. The exchange settled with the SEC last year over staking services for $30 million.

"Very glad to have this behind me," Powell noted on X.