In March, the Federal Bureau of Investigation (FBI) conducted a search of the Los Angeles home belonging to Jesse Powell, the co-founder of Kraken cryptocurrency exchange. However, the investigation was unrelated to crypto activities and instead focused on allegations of hacking and cyberstalking involving a nonprofit arts group founded by Powell.
According to sources familiar with the matter, Powell allegedly interfered with computer accounts related to the Verge Center for the Arts, blocking access to emails and other messages from contributors. The FBI, along with the U.S. Attorney’s Office for the Northern District of California, had been investigating Powell since at least September.
During the search, electronic devices were seized from Powell’s Brentwood residence. However, it’s important to note that no criminal charges have been filed against Powell thus far. His lawyer, Brandon Fox, emphasized that the investigation was primarily centered around the allegations made by the nonprofit arts group and not Powell’s involvement in the cryptocurrency industry. This statement was corroborated by a spokesperson from Kraken.
Powell, who also serves as the founder and board member of Verge Center for the Arts, established the Sacramento-based arts group in 2007. While Kraken remains the second-largest U.S.-based cryptocurrency exchange after Coinbase, the investigation into Powell does not appear to be directly related to his role at the exchange.
It is worth mentioning that Kraken faced enforcement action in February when the U.S. Securities Exchange Commission (SEC) fined the company $30 million for failing to register its staking service program. However, this SEC action is separate from the current investigation involving Powell.
The FBI search at Powell’s home highlights the ongoing scrutiny surrounding cybersecurity and the need for law enforcement agencies to address potential hacking and cyberstalking incidents. As the investigation continues, its outcome will determine whether any charges are brought against Powell in connection with the alleged activities involving the nonprofit arts group.