The U.S. Department of Justice (DOJ) has formally concluded its two-year investigation into Jesse Powell, co-founder of the prominent cryptocurrency exchange Kraken. This development marks a significant closure for a high-profile figure in the digital asset sector. Notably, the federal inquiry was not related to his activities at Kraken, instead focusing on an internal dispute within a non-profit organization.
- The U.S. Department of Justice has concluded a two-year investigation into Kraken co-founder Jesse Powell.
- The federal inquiry focused on an internal governance dispute at the Verge Center for the Arts, not Powell’s role at Kraken.
- The investigation included an FBI search and seizure of Powell’s personal electronic devices, which have now been returned.
- Allegations, initially reported as “hacking and online stalking,” were clarified in court filings to center on control over digital communication channels.
- Despite the conclusion of federal scrutiny, Powell remains engaged in a civil lawsuit in California state court against former non-profit board members.
Conclusion of Federal Inquiry and Its Nuances
The federal investigation, which commenced nearly two years ago, involved an FBI search and the seizure of Powell’s personal electronic devices. The recent return of these devices signifies the formal termination of the case against him, bringing an end to federal scrutiny.
At the core of the DOJ’s inquiry was a governance conflict at the Verge Center for the Arts, a non-profit organization that Powell founded in Sacramento in 2008. The allegations originated from an internal board dispute that began following Powell’s removal from Verge’s governing body. While initial reports, including one by The New York Times, suggested claims of “hacking and online stalking” against the organization, subsequent court filings clarified that the dispute primarily centered on control over Verge’s internal communication channels, such as Google Workspace and Slack accounts. Powell has consistently maintained that he did not restrict access to these platforms and has accused former colleagues of establishing a separate digital infrastructure with the intent to isolate him.
Persistent Legal Challenges: The Civil Lawsuit
Despite the cessation of the federal investigation, Powell remains engaged in a civil lawsuit in California state court. He has filed suit against former Verge board members, alleging wrongful removal and defamation. Powell contends that these individuals orchestrated a smear campaign with the objective of ousting him from the organization he established. This ongoing civil action underscores the continued legal complexities surrounding the initial conflict, even as federal scrutiny has concluded.
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