Breaking: FBI Raids Home Of Kraken Ex-CEO Jesse Powell

Crypto Market News: Jesse Powell, the cofounder of crypto exchange Kraken is involved in a federal investigation on charges that he hacked and harassed a non-profit organization. In connection with the criminal investigation, the Federal Bureau of Investigation (FBI) reportedly searched Powell’s home in Los Angeles. Meanwhile, the Kraken management issued a statement about the investigation. In September 2022, Powell stepped down as the Kraken chief executive officer to focus more on the product side.

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Earlier in February 2023, Kraken was subject to an investigation by the U.S. Securities and Exchange Commission (SEC) over violations of offering unregistered securities in the United States, after it which a settlement was reached.

Former Kraken CEO Under FBI Probe

The latest investigation involving Powell related to the Verge Center for the Arts complaining about his interference with its computer accounts and blocking access to emails and other communications, according to a report from The New York Times. However, the former Kraken CEO was quoted as denying doing anything wrong in relation to the investigation.

A statement from the crypto exchange said,

“Kraken has been made aware that former CEO Jesse Powell is involved in a civil dispute with a nonprofit art gallery, the Verge Center for the Arts. We understand there is a federal investigation open and search warrants were executed to gather more information about the Verge matter. The US Attorney has advised us that Kraken is not a part of the investigation in any way.”

The FBI seized electronic devices as part of the raid on Thursday.

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