The Federal Bureau of Investigation reportedly carried out a search at the residence of Jesse Powell, the man behind Kraken, the second-largest crypto exchange in the United States. People familiar with the matter revealed that the FBI’s raid was not in connection with Powell’s cryptocurrency business but related to his non-profit ventures.
Kraken CEO Was Under Investigation Since Last Fall
According to a report by the New York Times, the FBI searched Jesse Powell’s residence in Los Angeles’ Brentwood area in March this year. Documents viewed by NYT revealed that federal agents seized electronic devices from the Kraken CEO’s home during the search. The search was reportedly over accusations against Powell of hacking and cyber-stalking a non-profit.
The Verge Center for the Arts, which was founded by Jesse Powell, accused him of interfering with its computer accounts and blocking access to emails and other online communications. The FBI and federal prosecutors in California have reportedly been looking into Powell since last fall. No formal charges have been filed against the Kraken founder yet.
News of the FBI’s search and investigation was confirmed by Jesse Powell’s lawyer Brandon Fox, who added that Powell had not done anything wrong. A spokeswoman from Kraken told NYT that the FBI’s investigation of Verge was not related to the crypto exchange in any manner. According to her, the crypto firm had no reason to believe that the investigation involved any other potential issues. At the time of writing, there was no official statement from Jesse Powell regarding the recent developments.