Feds Drop Case Against Kraken Co-Founder Jesse Powell

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Feds Drop Case Against Kraken Co-Founder Jesse Powell

Written by Aaron S.,

Editor-In-Chief

Last Updated: July 23, 2025

Key Takeaways

US authorities have ended their investigation into Jesse Powell and returned devices seized during a 2023 search of his Los Angeles home;
The case focused on Powell’s alleged interference at a nonprofit he co-founded, not his role at Kraken or in the crypto industry;
Powell denied all allegations and filed a civil suit, and later compared the dropped case to the ongoing Roman Storm trial.

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Feds Drop Case Against Kraken Co-Founder Jesse Powell

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US authorities have officially closed their investigation into Jesse Powell, the co-founder of Kraken $585.86M , and have returned the electronic devices they seized during a 2023 search of his home in Los Angeles.

The decision, reported by Fortune on July 22, ends a case that had no direct connection to Powell’s work at Kraken or the crypto industry.

Powell shared the news in a post on X, "Very glad to have this behind me", while also thanking those who supported him through the process and his legal team for their work. He added, "Wild how quickly you can have your life upended".

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The case stemmed from accusations that Powell interfered with the Verge Center for the Arts, a nonprofit he helped establish in 2008.

According to reports, he was accused of blocking access to email accounts and tampering with the group’s computer systems. The New York Times revealed in 2023 that FBI agents had searched his home as part of this inquiry.

In response to the accusations, Powell denied any wrongdoing and later filed a civil case against some of the group’s board members. He claimed they had misrepresented what happened.

The Department of Justice and the FBI did not provide an explanation for why the investigation was dropped. However, Powell compared it to another high-profile case. He said in a post on X, "It never made sense, but neither does the Roman Storm trial".

Recently, lawyers for Roman Storm told a judge they may request to cancel the trial. What did Storm’s lawyer, David Patton, say? Read the full story.