FBI ends probe into Kraken founder Jesse Powell over alleged hacking of nonprofit accounts

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Key Takeaways

The Justice Department has ended its investigation into Kraken founder Jesse Powell and returned devices seized by the FBI.
The dropped probe was unrelated to Kraken’s operations and centered on allegations involving Powell’s dispute with a nonprofit’s board.

The US Justice Department has dropped its investigation into Kraken founder Jesse Powell and returned multiple electronic devices seized during a 2023 FBI raid of his home, Fortune reported today.

The investigation centers on allegations that Powell hacked and cyberstalked the Verge Center for the Arts, a Sacramento nonprofit he founded in 2008. Powell has strongly denied the claims.

The FBI’s raid was unrelated to Kraken’s operations but stemmed from a dispute with Verge’s board members, whom Powell has sued civilly. He alleges they conspired to remove him from the organization and lock him out of digital accounts.

Brandon Fox, Powell’s attorney, received a declination letter from the DOJ confirming the probe’s closure. Fox indicated this development was important for restoring Powell’s reputation and Kraken’s regulatory standing.

The returned devices reportedly contained information supporting Powell’s version of events, according to new filings. Powell has accused Verge board members of withholding key documents during the legal process, including one member who serves as Verge’s legal counsel.

This is a developing story. Please come back for further updates.