FBI Targets Kraken Founder Jesse Powell In Startling Hacking Probe

Key Points:

• FBI searches home of Kraken founder Jesse Powell in a hacking investigation.
• Allegations involve interference with nonprofit’s computer accounts.
• Powell not charged, lawyer asserts innocence and unrelatedness to the crypto industry.

Jesse Powell, the founder and former CEO of crypto exchange Kraken, has recently come under the scrutiny of federal authorities as the FBI conducted a search of his Los Angeles home earlier this year.

This investigation is linked to allegations of hacking and cyberstalking involving the Verge Center for the Arts, a nonprofit organization.

Agents from the Federal Bureau of Investigation (FBI) and the U.S. attorney’s office for the Northern District of California have been actively investigating Jesse Powell since at least the fall of last year. The Verge Center for the Arts accused Powell of interfering with its computer accounts, including blocking access to emails and other forms of communication.

According to reports from The New York Times, law enforcement agents conducted a search of Powell’s Brentwood residence, seizing electronic devices as part of their investigation. It is important to note that Powell has not been formally charged with any criminal offenses related to the investigation.

In response to the allegations, Jesse Powell’s legal counsel, Brandon Fox of Jenner & Block, issued a statement emphasizing that the Verge Center for the Arts had presented a one-sided account and failed to provide the government with the complete picture. Fox stated that Powell “did nothing wrong” and asserted that the matter at hand was unrelated to Powell’s employment or his conduct in the cryptocurrency industry.

While Jesse Powell stepped down as the CEO of Kraken late last year, he continues to serve as the chairman of the board. Powell’s involvement with the Sacramento-based arts group, Verge Center for the Arts, dates back to its founding in 2007, although his LinkedIn profile indicates his role as a founder and board member starting from April 2010.

Kraken, in response to the ongoing investigation, clarified that the matter is separate from the company’s activities and expressed no indication that prosecutors are examining other potential issues related to Kraken.

As the legal proceedings unfold, the focus will be on the outcome of the investigation and any official statements from the involved parties or law enforcement agencies. The case has drawn attention within the cryptocurrency industry, highlighting the increased scrutiny faced by high-profile figures and institutions operating in the sector.

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