25 February, 2024

Kraken CEO’s Home Searched by the FBI Over Hacking Allegations

8 months ago

07 Dec, 2023

Jesse Powell, the founder and Chief Executive of San Francisco-based crypto exchange Kraken, was the subject of an investigation by the U.S. Federal Bureau of Investigation (FBI). The FBI reportedly searched Powell’s California home earlier this year over allegations of hacking and cyber-stalking. 

According to a report by the New York Times, the FBI searched Jesse Powell’s Brentwood, Los Angeles home in March this year. The search was carried out after a non-profit venture founded by Powell accused him of hacking and cyber-stalking its business. The non-profit, Verge Center for the Arts, alleged that the Kraken CEO was blocking access to emails and other messages. 

People familiar with the matter revealed that federal agents and prosecutors in California seized electronic devices from Jesse Powell’s home while executing the search warrant. They further revealed that the FBI had been looking into Powell’s affairs since as early as September last year. 

Brandon Fox, a lawyer representing Jesse Powell, confirmed that his client was under investigation by the FBI and federal prosecutors and that they had searched his house. He also stated that the non-profit investigation was not related to Kraken or Powell’s other crypto ventures. A spokeswoman for Kraken also emphasized that the investigation was unrelated to the crypto exchange

Jesse Powell has not been accused of any wrongdoing yet. The FBI and the U.S. Attorney’s Office for the Northern District of California declined a request for comment from the NYT. There was no official response to the latest developments from Kraken’s CEO either. 

The FBI’s raid came nearly a year after the Verge Center ousted Jesse Powell from its board of directors for violating the organization’s guiding principles. Powell sued the non-profit organization last month, claiming that his dismissal was improper.