FBI Ends Investigation of Kraken Co-Founder, Returns Confiscated Devices

FBI Investigation Conclusion

The US Federal Bureau of Investigation (FBI) has concluded its investigation into Kraken co-founder Jesse Powell and has returned the property that was seized during a search of his home in 2023. According to a report by Fortune on Tuesday, the FBI returned electronic devices to Powell after allegations of hacking and cyberstalking involving the Verge Center for the Arts, a nonprofit organization he helped establish in 2008.

Investigation Details

The FBI's probe was not related to Powell's involvement with Kraken, the cryptocurrency exchange he co-founded, or the broader crypto industry. Powell denied any wrongdoing and initiated a civil suit against members of the Verge board of directors. The investigation, which began in 2022, led to the seizure of electronic devices from Powell's home, potentially containing digital assets.

Political Involvement

Powell, who actively participated in the 2024 election by contributing $1 million in Ether (ETH) to then-presidential candidate Donald Trump’s campaign, saw the investigation conclude without further details provided by the US Department of Justice and the FBI. The current heads of the FBI and the US Attorney General, appointed by Trump, oversaw the investigation into Powell.

SEC Complaint Against Kraken

In a related development, the US Securities and Exchange Commission (SEC) had filed a complaint against Kraken in 2023 for operating without proper registration. However, the case was dropped in March under SEC Acting Chair Mark Uyeda. The SEC's decision to drop enforcement actions against various crypto companies, including Ripple Labs, Coinbase, and Gemini, signaled a shift in regulatory approach.