FBI Searches Home of Kraken Co-Founder Jesse Powell in Ongoing Investigation - Investor Bites

FBI Searches Home of Kraken Co-Founder Jesse Powell in Ongoing Investigation – Investor Bites

Time Stamp: July 7, 2023 8:46 AM
FBI Searches Home of Kraken Co-Founder Jesse Powell in Ongoing Investigation - Investor Bites PlatoBlockchain Data Intelligence. Vertical Search. Ai.

SNEAK PEEK

  • Former Kraken CEO Jesse Powell is under investigation by the FBI for alleged cyberstalking.
  • The investigation, conducted jointly by the FBI and the U.S. Attorney’s Office, has been ongoing since September of last year.
  • In March, the FBI searched Powell’s residence and seized electronic devices as part of the investigation.

Former Kraken CEO Jesse Powell, a co-founder of the cryptocurrency exchange, has become the subject of an FBI investigation following allegations of cyberstalking and hacking targeting the nonprofit arts organization he also founded, Verge Center for the Arts.

The joint investigation by the FBI and the U.S. Attorney’s Office for the Northern District of California has been ongoing since at least September of last year, according to sources familiar with the matter.

In March, the FBI executed a search warrant at Powell’s residence in Brentwood, Los Angeles, and confiscated electronic devices as part of the investigation. However, no official criminal charges have been filed against Powell at this time. Verge Center for the Arts has filed a complaint with authorities, accusing Powell of interfering with computer accounts and obstructing access to communications from the organization’s supporters.

Powell’s attorney, Brandon Fox, maintains that the investigation is primarily focused on the charges against Verge and does not directly link Powell to any misconduct within the bitcoin industry. Kraken, through a representative, has also emphasized that Powell’s alleged actions are unrelated to his work at the exchange.

The scrutiny faced by bitcoin exchanges is currently intensifying as regulators aim to ensure compliance and address suspected wrongdoing. Major players in the market, including Coinbase and Binance, are encountering significant obstacles as they navigate this challenging landscape.

Powell’s association with Verge Center for the Arts soured last year when he was removed from the board for violating the organization’s guiding principles, according to The New York Times. This latest investigation has reignited attention on Powell’s past involvement with the charity.

The FBI investigation into Jesse Powell, the co-founder and former CEO of Kraken, revolves around allegations concerning the Verge Center for the Arts, a nonprofit organization he founded. While Powell’s house was searched, no criminal charges have been filed against him yet.

It is important to note that the investigation does not appear to be directly linked to his work in the bitcoin industry. As regulatory scrutiny of cryptocurrency exchanges grows, Powell’s case adds to the challenges faced by industry participants. Moreover, Powell’s prior involvement with Verge Center for the Arts has garnered renewed attention due to the ongoing probe.

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