US DoJ Drops Investigation Into Kraken Founder Jesse Powell

The U.S. Department of Justice (DoJ) has officially dropped its investigation into Jesse Powell, co-founder of Kraken, following allegations of hacking a nonprofit organization. The case, unrelated to Kraken’s operations, concluded without charges, with Powell’s seized devices returned earlier this year.

The probe, which began in 2023, centered on claims Powell hacked Verge Center for the Arts, a Sacramento nonprofit he co-founded. The DoJ’s decision, finalized in April 2024, was confirmed in June, allowing Powell to pursue legal remedies against accusers.

Investigation Timeline and Allegations of US Kraken Co-Founder

The investigation into Jesse Powell began in 2023 after the Verge Center for the Arts, a nonprofit he co-founded, accused him of hacking its computer system. Powell had been removed from Verge’s board in 2022 following a management dispute, and the nonprofit alleged he blocked employee access to emails, websites, and internal communication tools.

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These allegations led to a raid by the FBI on Powell’s Los Angeles home in 2023, during which computers, laptops, and phones were seized.

Despite extensive scrutiny, federal prosecutors concluded in April 2024 that there was no evidence of criminal activity. The U.S. Attorney’s Office issued a “declination letter” in June 2024, formally ending the case and authorizing the return of Kraken co-founder devices.

Reports from leading media confirmed that the probe was unrelated to Kraken’s operations and was purely tied to Powell’s dispute with Verge executives. Powell, who had donated over $1 million to the non-profit, maintains that the allegations were false and part of a conspiracy against him.

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