The US Department of Justice (DOJ) has concluded its investigation into Kraken founder Jesse Powell, following a raid on his home two years ago that sparked widespread attention.
Initially, federal agents stormed Powell’s residence amid a broader crackdown on the cryptocurrency industry. However, the investigation was not related to his operations at Kraken; instead, it arose from a management dispute with Verge, an arts non-profit that Powell had established.
Kraken Founder Accuses Verge Executives Of Conspiracy
The raid, which garnered significant media coverage, was fueled by allegations that Powell had engaged in hacking and cyber-stalking related to the non-profit. However, as the details of the case unfolded, it became clear that these claims were far less sensational than initially portrayed.
According to Fortune, legal documents filed by Powell reveal that the conflict revolved around access to various digital accounts, such as Slack and Google, rather than any nefarious activities.
In a civil lawsuit against Verge, Powell contends that he was wrongfully removed from the board and that executives conspired to create new accounts and domain names without his consent.
He founded Verge in 2008, aiming to foster artistic endeavors in Sacramento, where he resided for many years. Recently, documents submitted by Powell indicate that the Department of Justice has returned seized devices, which contained information supporting his claims.
Clearing Path For Future Operations
Expressing relief over the closure of the investigation, Powell emphasized the personal and professional toll the raid had taken on him. In a statement to Fortune, he reiterated his innocence, asserting that the accusations from Verge were unfounded.
As he moves forward with his civil lawsuit against Verge’s board members, Powell has raised concerns about their failure to disclose critical documents during the legal process, particularly those pertaining to Phil Cunningham, a board member who also serves as legal counsel for the organization.
Furthermore, Powell’s attorney, Brandon Fox, received a “declination letter” from the Department of Justice confirming the end of the investigation. Fox sought this letter to help mitigate the damage inflicted on Powell’s reputation and Kraken’s operations within the tightly regulated financial sector.
However, the US authorities declined to comment on the letter or the circumstances surrounding the leak of the investigation details to the New York Times, as requested by Fortune.
Despite the tumultuous legal battles, Verge continues to play an active role in Sacramento’s arts community, with Powell having invested over $1 million in support.
While he has not disclosed whether he recovered any cryptocurrencies from the confiscated devices, the conclusion of the investigation allows him to refocus on the ongoing litigation and his commitment to both Kraken and Verge.
Featured image from DALL-E, chart from TradingView.com
