Jesse Powell, co-founder of the cryptocurrency exchange Kraken, has become the subject of a federal investigation linked to his activities in a nonprofit organization. This article explores the details of what occurred.
Reasons for the Investigation
The FBI launched an investigation into Jesse Powell concerning the nonprofit organization Verge Center for the Arts, which he helped establish. Allegations emerged that Powell had unauthorized access to internal accounts, including Slack, Google Drive, and email platforms, following disputes with the board members.
This led to a federal investigation and a search and seizure operation at Powell's residence in Los Angeles in 2023, where agents confiscated multiple digital devices, including phones and laptops.
Impact on Kraken
Despite Powell’s role at Kraken, the investigation was completely unrelated to cryptocurrency activities or the Kraken exchange itself. No accusations were made regarding Kraken’s business practices, user funds, or platform integrity. The case revolved solely around Powell’s personal and nonprofit-related activities.
Current Status of the Case
While the federal investigation progressed largely out of public view, developments have emerged. As reported, the FBI investigation officially concluded in July 2025, with the Department of Justice declining to press charges and returning all seized electronic devices to Powell. He is now pursuing civil claims against the Verge board in a separate legal process.
As no evidence of criminal wrongdoing was found, the case has been closed. However, Powell continues to address the dispute with the Verge board, highlighting the importance of resolving conflicts within nonprofit organizations.
