The United States Federal Bureau of Investigation (FBI) has concluded its inquiry into Jesse Powell, co-founder of Kraken, regarding allegations of hacking a nonprofit organization he established. This was reported by Fortune, citing documents from the Department of Justice.
Authorities also returned equipment seized during searches of Powell’s home, including dozens of laptops and phones.
The situation was first reported by The New York Times in July 2023. According to sources, the FBI initiated the case against the entrepreneur in the autumn of 2022. Representatives of the Verge Center for the Arts claimed that Powell hacked the company’s computers, obstructing access to email and other communications.
The Kraken co-founder has repeatedly denied involvement in the alleged activities and filed a civil lawsuit against members of Verge’s board of directors.
In comments to Fortune, Powell expressed relief at the conclusion of the investigation and stated he would continue legal action against the art center’s representatives.
“The FBI search of my home was devastating both personally and professionally. I am still shocked that the search was prompted by baseless accusations made by Verge against me. I knew I had done nothing illegal, and the results of my defamation case against Verge have irrefutably proven this,” he added.
In a recent court filing, Powell wrote that two members of Verge’s board, who attempted to remove him, failed to provide key documents during the discovery process.
Brandon Fox, the attorney for the Kraken co-founder, also received a so-called “declination letter” from the U.S. Department of Justice, indicating the closure of the investigation. The lawyer claims to have requested additional compensation for the damage caused to Powell and his companies.
In 2022, Jesse Powell stepped down as CEO of Kraken. He explained his departure as a desire to focus more on product development and “advocating for the industry’s interests.”