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The FBI has officially ended its investigation into Jesse Powell, founder of cryptocurrency exchange Kraken, and returned all seized devices, including laptops and cellphones.
The conclusion of the Kraken founder Jesse Powell investigation brings closure to a case that had drawn significant attention from both crypto industry observers and legal experts.
While authorities have not disclosed specific reasons for dropping the probe, the return of all devices suggests investigators found insufficient evidence to pursue charges related to the nonprofit dispute that sparked the Kraken founder Jesse Powell investigation in the first place.
The probe, which began over a management dispute at a nonprofit Powell founded, was unrelated to Kraken’s operations. Powell expressed relief, stating the investigation “never made sense” and thanking his legal team for resolving the matter.
The returned devices reportedly contain evidence supporting Powell’s version of events, though no further legal action is expected.
The closure of the Kraken founder Jesse Powell investigation marks the end of a months-long ordeal that had raised questions about potential regulatory overreach in the crypto industry.
The FBI launched its inquiry following allegations tied to Powell’s role at a nonprofit arts organization, the Verge Center for the Arts, which he co-founded in 2007.
Sources familiar with the case say the dispute involved internal governance issues rather than financial misconduct or criminal activity.
“This was always a misunderstanding blown out of proportion,” said a legal representative for Powell, speaking on condition of anonymity. “The Kraken founder Jesse Powell investigation was never about Kraken or cryptocurrency—it stemmed from a personal disagreement.”
Law enforcement agents seized multiple electronic devices in 2023, prompting speculation about potential ties to Kraken’s operations. However, federal officials later confirmed the case was strictly limited to the nonprofit matter.
In a statement shared on X (formerly Twitter), Powell criticized the handling of the case, calling it an unnecessary disruption.
“Very glad to have this behind me,” he said. “It never made sense… 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 Kraken.”
Industry analysts say the resolution of the Kraken founder Jesse Powell investigation removes a lingering distraction for one of crypto’s most prominent executives.
Powell, who stepped down as Kraken’s CEO in 2022 but remains chairman of the board, has been an outspoken advocate for regulatory clarity in digital assets.
The dropped probe comes amid heightened scrutiny of crypto executives by U.S. agencies. Legal experts say the Kraken founder Jesse Powell investigation highlights the risks of conflating personal and professional legal matters in the industry.
“The FBI’s decision to close this case without charges reinforces that not every dispute warrants federal intervention,” said Sarah Miller, a white-collar defense attorney at Buckley LLP. “But it also shows how quickly crypto figures can become targets.”
Kraken, one of the longest-running crypto exchanges, has faced its own regulatory challenges, including a 2023 settlement with the SEC over alleged unregistered securities offerings. The resolution of Powell’s case may ease investor concerns about further instability at the company.
With the Kraken founder Jesse Powell investigation resolved, Powell is expected to focus on his advisory role at Kraken and other ventures. The exchange, which continues to operate globally, recently expanded its European presence amid ongoing U.S. regulatory uncertainty.
“The crypto industry needs founders who can navigate these pressures,” said Meltem Demirors, chief strategy officer at CoinShares. “Jesse’s experience—both in building Kraken and now dealing with this probe—shows the complexities of leading in this space.”
As for the returned devices, Powell’s team confirmed they contained no incriminating evidence, further validating his claims of a baseless investigation. The case’s dismissal may set a precedent for how similar disputes involving crypto executives are handled in the future.
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