Jesse Powell, the co-founder and former CEO of the second-largest U.S. crypto exchange Kraken, faced a criminal investigation by the Federal Bureau of Investigation (FBI), according to a recent New York Times report.
The FBI agents searched Powell's home in Los Angeles in March, seizing his electronic devices.
The search was conducted as part of an investigation into allegations that Powell hacked and cyber-stalked a non-profit arts group he founded, the Verge Center for the Arts.
- Kraken's co-founder was alleged of interfering with the art group's computer accounts by blocking access to emails and messages from contributors.
- Three sources familiar with the issue said the FBI and the U.S. Attorney's Office for the Northern District of California had been investigating Powell since at least September 2022.
- Prosecutors have not accused Powell of any crimes.
- Powell's lawyer, Brandon Fox, has confirmed the investigation, underlining that it was focused on the allegations by the arts group and had nothing to do with Powell's involvement in the cryptocurrency field.
- A Kraken spokesperson also said the investigation was not related to the company in any way.
- In September, Powell stepped down from the CEO position at Kraken, continuing to carry out his chairman role.
Powell founded the Verge Center for the Arts in 2007 and worked as a board member after April 2010.
- However, the arts group removed him from its board of directors last year, citing his failure to attend board meetings and violations of the organization's principles.
- After his removal, Powell blocked the group from accessing its website, emails, and internal messaging system, claiming that he owned the digital accounts.
- The Kraken co-founder also sued Verge in June, stating that his dismissal from the board was improper.