The FBI has officially closed its investigation into Kraken founder Jesse Powell and returned multiple electronic devices seized during a 2023 raid.
Federal prosecutors sent Powell a declination letter confirming that no charges were filed and that the case is now closed.
Federal Authorities Close Case, Return Devices
With the FBI’s decision, a high-profile legal chapter ends for one of crypto’s leading figures. According to Fortune and court documents, the US Department of Justice issued a formal declination letter, confirming Powell will face no charges.
Numerous electronic devices seized during the investigation have now been returned, verifying the matter’s conclusion. Attorney statements and filings confirm the case’s closure, and the lack of any public press release from the DOJ or FBI further shows that no criminal findings arose.
Importantly, the FBI’s inquiry was completely separate from Powell’s work at Kraken or any cryptocurrency issue.
Investigators focused instead on allegations related to the Verge Center for the Arts, a Sacramento nonprofit Powell co-founded. According to reports, this dispute centered on a $500,000 donation from Powell and disagreements among board members.
Powell’s legal filings in the California Superior Court detail his civil claims against board members. Powell alleges mismanagement and breach of fiduciary duty, which triggered the federal probe.
Powell Responds to Investigation’s End
The raid and investigation took a toll on Powell’s reputation and daily life. During the probe, he endured scrutiny as authorities held his devices. Now, with his property restored and no charges filed, Powell states he intends to move forward.
“Very glad to have this behind me. It never made sense but neither does the Roman Storm trial. Wild how quickly you can have your life upended. I’m grateful for those who saw through it and for my stellar legal team. Now, turning my attention back to Kraken,” Jesse Powell posted on X.
Powell’s statement reflects both relief and determination to resume momentum at Kraken. As the legal saga ends, his focus now shifts to ongoing civil litigation against Verge’s board, maintaining that the allegations lacked merit.
Legal experts point out that reputational and financial impacts can linger, even after investigations close without charges. Therefore, Powell’s priority is rebuilding his public image and defending his philanthropic intentions in court.