FBI Concludes Investigation into Kraken Co-Founder: Latest Update

The US Federal Bureau of Investigation (FBI) has allegedly concluded its inquiry into Kraken co-founder Jesse Powell and returned property that was confiscated during a 2023 search of his residence.

As per a Tuesday Fortune article, the FBI had returned devices to Powell, ending its investigation regarding accusations that he had hacked and cyberstalked the Verge Center for the Arts, a nonprofit he was instrumental in founding in 2008.

This inquiry, reportedly not linked to Powell’s affiliation with Kraken, the cryptocurrency exchange he co-established, or the crypto sector as a whole, led to the FBI searching his residence and seizing electronic devices that may have contained digital assets. 

Reports indicated that Powell had been under scrutiny by US authorities since 2022. The Kraken co-founder consistently refuted involvement in the alleged actions and initiated a civil lawsuit against members of Verge’s board of directors.

The report did not provide any explanation for why the US Department of Justice and the FBI concluded their investigation into Powell, who became politically engaged during the 2024 election after donating $1 million in Ether (ETH) to then-presidential candidate Donald Trump’s campaign.

Trump appointees Kash Patel and Dan Bongino currently lead the FBI as director and deputy director, respectively, while Pam Bondi, also appointed by the president, heads the Justice Department as US Attorney General.

Related: Kraken’s Powell asserts in lawsuit he was denied housing due to crypto connections

Kraken had been facing SEC litigation

In 2023, the US Securities and Exchange Commission (SEC) filed a lawsuit against Kraken, claiming the exchange had operated without appropriate registration. However, the agency withdrew the case in March under SEC Acting Chair Mark Uyeda.