The FBI has officially ended its two-year investigation into Jesse Powell, co-founder of Kraken. The case centered around a dispute with Verge Center for the Arts, not Powell’s role in crypto. In 2023, authorities raided Powell’s home, seizing electronic devices in connection with allegations of hacking and cyberstalking. Those accusations stemmed from a management feud at Verge, the nonprofit Powell co-founded. With no charges filed and the FBI returning all devices, Powell has been effectively cleared.
The Department of Justice didn’t explain why the case was dropped. However, documents suggest that Powell’s version of events was backed by evidence found on the seized devices. Powell described the raid as “devastating,” both professionally and personally. Still, he maintains his innocence and insists Verge’s claims were baseless. This marks another moment where the FBI has pulled back from actions once seen as aggressive toward figures in the crypto space.
Kraken Continues to Build Despite Distractions
While Powell was under investigation, Kraken didn’t slow down. The exchange kept rolling out new features, expanding its services for crypto investors. One major move was its tokenized U.S. equities platform, which it extended to Binance Chain. This gave users easier access across blockchains, showing Kraken’s commitment to innovation.
Even with its founder in legal limbo, Kraken remained focused on its roadmap. The company is still pursuing an IPO and sees itself playing a bigger role in mainstream finance. Regulatory clarity could help with that, especially after the SEC dropped its lawsuit earlier this year. Under Acting Chair Mark Uyeda, the SEC began pulling back from its enforcement-heavy stance, giving Kraken and others breathing room.
Kraken’s ability to stay strong during Powell’s legal troubles highlights its resilience. The firm is positioning itself not just as a crypto exchange but as a bridge between traditional and decentralized finance.
Jesse Powell Speaks Out After FBI Raid
Jesse Powell has been vocal about the emotional and professional toll the FBI raid took on him. He claims the search was based on false allegations and that the Verge board tried to sideline him without following proper procedures. Powell even filed a civil case to fight back, revealing how deep the personal conflict had become.
Powell insisted he never hacked or stalked anyone, and the returned devices now support that claim. He believes the evidence shows he was unjustly targeted. As the investigation closes, Powell is speaking out more, warning that even crypto founders can get caught up in unrelated legal dramas.
Notably, Powell became politically active during the 2024 election, donating $1 million in Ether to Donald Trump’s campaign. This put him in the spotlight beyond crypto, adding a new layer of public interest to his story.
Kraken Avoids SEC Trouble As Regulators Shift
Kraken was also under pressure from the SEC in 2023. The agency accused the exchange of operating without proper registration. But in March, under a new administration, the SEC dropped the lawsuit without prejudice. This came as part of a broader regulatory shift, with the SEC also dropping cases against Ripple, Coinbase, and Gemini.
The case against Kraken had rattled some investors, but the quick reversal gave the exchange a fresh start. The change in leadership at both the SEC and FBI likely played a role. Trump appointees now head key agencies, and their approach appears more crypto-friendly.
With the SEC stepping back and the FBI closing its case on Powell, Kraken can now focus on growth. Regulatory uncertainty isn’t gone, but it’s easing—at least for now.
What’s Next for Kraken and Powell?
With the FBI probe over, Jesse Powell is no longer under legal scrutiny. He’s cleared to focus fully on Kraken’s next chapter. For now, Kraken is pushing ahead with plans for an IPO and continuing to expand its offerings. The company’s ability to grow during a crisis speaks volumes about its leadership and long-term vision.
This saga also shows how quickly regulatory tides can turn. What once looked like a serious threat to Powell’s reputation and Kraken’s future has now faded. Still, the episode is a reminder that the crypto world remains tightly watched—and sometimes misunderstood.
For Powell and Kraken, the message is clear: keep building, stay transparent, and be ready for whatever comes next.
