{"id":490754,"date":"2025-07-22T19:24:17","date_gmt":"2025-07-22T18:24:17","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=490754"},"modified":"2025-07-23T01:29:08","modified_gmt":"2025-07-23T00:29:08","slug":"fbi-drops-probe-into-kraken-founder-jesse-powell-returns-seized-devices","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/fbi-drops-probe-into-kraken-founder-jesse-powell-returns-seized-devices\/","title":{"rendered":"FBI drops probe into Kraken founder Jesse Powell, returns seized devices"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">The US Justice Department has closed its investigation into Kraken\u2019s founder Jesse Powell, and returned dozens of laptops and mobile phones agents seized during an FBI raid two years ago, Fortune reported on July 22.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The federal case<\/span> <strong><a href=\"https:\/\/cryptoslate.com\/krakens-jesse-powell-under-federal-investigation-but-exchange-remains-uninvolved\/\">did not revolve around Kraken\u2019s operations<\/a><\/strong><span style=\"font-weight: 400;\">, but rather a bitter governance fight at the Verge Center for the Arts, a Sacramento nonprofit Powell founded in 2008.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">News of the raid first surfaced in The New York Times, which reported that agents were probing allegations Powell had \u201chacked and cyber-stalked\u201d the nonprofit. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Court filings since then depict something far less cinematic: a dispute over who controlled Slack and Google Workspace accounts after Powell was pushed off Verge\u2019s board.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Powell insisted he never cut off anyone\u2019s access and argues instead that Verge insiders quietly created a new domain and parallel work accounts before moving to oust him.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">He is pursuing a civil lawsuit in state court, accusing former colleagues of defamation and wrongful removal.<\/span><\/p>\n<h2><strong>Justice Department drops the case<\/strong><\/h2>\n<p><span style=\"font-weight: 400;\">Documents Powell filed this week include a so-called declination letter from prosecutors, confirming the Justice Department has walked away from the case. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">His attorney said he requested the letter to counter the reputational damage caused by the raid and to reassure banks and regulators that Kraken\u2019s leadership is not under federal scrutiny.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Powell called the search \u201cdevastating\u201d personally and professionally, maintaining that discovery in his lawsuit has already shown the accusations to be baseless.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The government\u2019s exit does not resolve lingering questions. Neither the Justice Department nor the FBI would comment on how the Times obtained details of the investigation.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Powell\u2019s latest filings also accuse two Verge board members, one of them attorney Phil Cunningham, of withholding key documents during discovery.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Verge, meanwhile, continues to operate as a fixture of Sacramento\u2019s arts scene, supported over the years by more than $1 million in donations and extensive tech assistance from Powell.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Notably, Powell declined to say whether the returned devices held Bitcoin or other digital assets. When agents seized the hardware, Bitcoin (<strong>BTC<\/strong>) traded near $23,000. As of press time, BTC trades near $119,000.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The US Justice Department has closed its investigation into Kraken\u2019s founder Jesse Powell, and returned dozens of laptops and mobile phones agents seized during an FBI raid two years ago, Fortune reported on July 22. The federal case did not revolve around Kraken\u2019s operations, but rather a bitter governance fight at the Verge Center for [&hellip;]<\/p>\n","protected":false},"author":1511,"featured_media":490806,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1,39,77968,60793],"tags":[],"prediction_market_topic":[],"post_folder":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.9 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>FBI drops probe into Kraken founder Jesse Powell, returns seized devices<\/title>\n<meta name=\"description\" content=\"Kraken CEO Jesse Powell&#039;s attorney requested a DOJ letter to counter the alleged reputational damage caused by the raid.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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