Breaking: FBI Drops Two-Year Investigation Into Kraken Founder Jesse Powell

Emerging reports indicate that the Federal Bureau of Investigation (FBI) has abandoned its investigation into Jesse Powell, the founder of the US-based cryptocurrency exchange Kraken. The Kraken founder has been within the cross-hairs of the FBI over a matter unrelated to cryptocurrencies for nearly two years.

FBI Ends Kraken Founder Investigation

According to a Fortune report, the FBI is moving on from a two-year investigation on Jesse Powell, extending the streak of changing stances by US law enforcement agencies toward the cryptocurrency sector. However, the investigation has little to do with cryptocurrencies but revolved around a management dispute with Verge, an arts non-profit founded by Powell.

Back in 2023, the Kraken founder came under fire for allegedly hacking and cyberstalking Verge over a management dispute involving key executives. Events reached a crescendo after US authorities raided Powell’s home and seized dozens of cellphones and laptops as part of their investigations.

Last year, Powell filed a civil case against Verge with fresh facts emerging that the parties bickered over access to Slack and Google accounts. At the time, Powell disclosed in his filing that he did not stalk or limit access to accounts, alleging that Verge’s executive moved to remove him from the board without proper notice.

Now, the Justice Department has shuttered its investigation and returned the seized devices to Powell. Furthermore, a filing indicates that the devices contain proof that Powell’s version of events is accurate.

“The FBI’s raid on my house was devastating both personally and professionally,” said Powell. “It is still shocking that the raid was premised on Verge Center for Arts baseless accusation against me.”

Very glad to have this behind me. It never made sense but neither does the @rstormsf 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 @krakenfx. 🐙🚀 https://t.co/LbaDxN0bCl

— Jesse Powell (@jespow) July 22, 2025

With the FBI probe out of the way, Powell said he will turn his attention to Kraken. Despite the investigation into the Kraken founder, the exchange had continued to unveil new product innovations while targeting an IPO. The US exchange has expanded its tokenized US equities offering to Binance Chain, extending multi-chain access.

Meanwhile, it is worth mentioning that the exchange had also been facing regulatory scrutiny under the Gensler-led SEC. However, following the entrance of this new administration earlier in the year, the Commission agreed to drop the Kraken lawsuit without prejudice.