- FBI closes probe, returns devices, clearing Jesse Powell of wrongdoing fully.
- Powell claims Verge board lied, pushes civil case for alleged damages.
- Kraken plans IPO 2026, Powell’s legal battles attract more spotlight now.
The FBI has officially closed its investigation into Jesse Powell, the founder of Kraken. This week, Powell confirmed that the Justice Department has ended the case. FBI has also given back dozens of devices that its agents confiscated from his house. These were cell phones and laptops.
Powell Wins Nonprofit Conflict, Investigation Now Closed
Kraken was not under investigation in its business activities. Rather, the case started due to a management conflict with a nonprofit named Verge Center for the Arts. Since the beginning, Powell has indicated that the charges were unfounded. Now, he has evidence to substantiate his side of the story since the returned gadgets are in use.
Powell told Fortune via email that he was relieved that the investigation was done. He also added that the FBI raid was traumatic to him, both personally and professionally. Powell termed the allegations made by Verge as baseless and harmful. According to him, he was aware of the fact that he did not do anything wrong, and discovery in his defamation suit against Verge has revealed that this is a fact that cannot be refuted.
The fight has not ended even though the criminal investigation process has ended. Powell intends to carry on a civil case with board members of Verge. According to him, they lied to the law enforcement agents, and as a result, FBI stormed the place. Powell added that he was going to pursue the proper legal action against the actors of the disaster.
The move is timely for Kraken. The crypto exchange is among the biggest in the United States. Regulators have shown more interest in it over the past years. In 2023, Kraken came to an agreement with the Securities and Exchange Commission (SEC) and closed its staking services in the U.S.
Cleared Probe Boosts Kraken’s Stability Ahead of Tough Crypto Rules
While the company deals with regulators, it is also preparing for the future. Kraken is also said to be looking at an initial public offering (IPO), perhaps as soon as the first quarter of 2026. In 2023, Powell left the position of CEO, although he remains on the board of directors of Kraken. His legal tussles will probably be of interest as Kraken progresses to its IPO plans.
In the process, Powell himself has attracted additional attention through his political activity. He has been in the news after giving a donation of $1 million in crypto to former President Donald Trump to use in his 2024 campaign. There are speculations about whether politics contributed to the way that his case was dealt with by the FBI. No connection between the investigation and Powell’s political contributions has been made by the officials, however.
In more recent court filings, Powell also alleges that Verge board members failed to produce important documents in the discovery stage of the case. He says that this is particularly grave in that one of the members of the board, Phil Cunningham, happens to be the lawyer of Verge. These accusations may put further substance to Powell’s civil suit in the coming months.
This chapter puts Powell to sleep but it opens another door. He is now forced to concentrate on the civil suit to clear his name entirely. Meanwhile, Kraken has a future IPO, which implies that he will not leave the spotlight.
Ultimately, the abandoned investigation clears a dark cloud that was hovering over the name of Powell. It also makes Kraken more stable as it continues to grow in the hard crypto regulation world.
