The U.S. Department of Justice (DOJ) has reportedly ended its investigation into Kraken founder Jesse Powell, according to a July 22 Fortune report. The probe, which began in 2023, centered on allegations related to the Verge Center for the Arts, a nonprofit organization Powell co-founded.
Jesse Powell Vindicated in DOJ Investigation
Federal authorities raided Powell’s home last year, seizing laptops and mobile devices amid accusations that he stalked and hacked the arts nonprofit. These claims stemmed from a “management dispute” with members of Verge’s board.
Powell consistently denied the allegations, calling them “baseless” and “devastating.” He also filed a civil lawsuit against Verge board members, asserting that the accusations were aimed at damaging his reputation.
According to Fortune’s latest report, the DOJ has returned the seized property and closed its investigation, confirming Powell’s stance.
“I knew I had done nothing wrong, and discovery in my defamation case against Verge has shown this is undeniable,” Powell told the publication.
SEC Dropped Kraken Lawsuit Earlier This Year
This news follows another major legal win for Powell’s crypto exchange, Kraken. In 2023, the U.S. Securities and Exchange Commission (SEC) sued Kraken for allegedly operating as an unregistered securities exchange, broker, and clearing agency.
At the time, Gurbir S. Grewal, Director of the SEC’s Division of Enforcement, accused Kraken of prioritizing profits over compliance, stating:
“Kraken made a business decision to reap hundreds of millions of dollars from investors rather than coming into compliance with securities laws.”
However, the case was dropped earlier this year under Acting Chairman Mark Uyeda, as the SEC began shifting its approach away from aggressive enforcementq and toward clearer crypto regulations.
Conclusion:
- DOJ has closed its probe into Kraken founder Jesse Powell, reportedly clearing him of wrongdoing.
- The allegations stemmed from a dispute with Verge Center for the Arts, a nonprofit Powellq co-founded.
- The SEC also dropped its case against Kraken earlier in 2025, marking a regulatory turning point for the crypto sector.
Source: https://www.nytimes.com/
