FBI Closes Investigation Into Kraken Founder Jesse Powell – Returns Seized Devices in Stunning Reversal

Feds fold on crypto probe as Kraken’s Powell walks free—again.

In a move that’ll fuel both conspiracy theories and regulatory cynicism, the FBI quietly dropped its investigation into Jesse Powell this week. No charges. No explanation. Just a courier returning his electronics like a bad eBay purchase.

The takeaway? Even Uncle Sam’s crypto-crackdowns have weak hands when confronted with actual evidence. Or maybe Powell’s lawyers outmaneuvered them—either way, it’s a win for the 'move fast and break things' crowd.

Wall Street analysts are already spinning this as proof that 'blockchain founders operate above the law' (while quietly seething that their own SEC paperwork takes 18 months to process).

One thing’s certain: the crypto-rebellion just got another martyr—and the suits in Washington another headache.

Why Powell was investigated

According to Powell, the Verge board illegally ousted him from the organization after he donated $1 million for its operations. They also locked him out of all the non-profit’s accounts, changed the login codes to its domains, effectively removing his control over the organization.

Subsequently, the organization accused him of illegally using his admin codes to take control over the company’s website. This led to the probe over whether or not Powell illegally tried to take back control over the organization.

At the time, the raid was leaked to the New York Times, which raised concerns over the potential political motivations of the investigation. Powell is known for his unconventional political ideas due to his libertarian leanings. In 2024, Powell personally donated $1 million to then-candidate Donald Trump’s campaign.

He stressed that the crypto industry was “under attack” under the Biden administration, especially by the SEC’s Gary Gensler. At the same time, TRUMP made a major U-turn on crypto, which he previously called a scam. During his 2024 presidential campaign, he vowed that his administration would make the United States the “crypto capital of the world.”