- He's accused of hindering computer accounts at Verge Arts Center
- No charges have been pressed against Powell so far
Jesse Powell, the cofounder of crypto exchange Kraken, is under investigation by US federal authorities for allegedly hacking and cyberstalking an NPO he himself founded, CoinDesk wrote, citing a New York Times report.
The Times cited anonymous sources, according to whom Powell hindered the computer accounts of the Verge Center for the Arts, blocking access to emails and other messages. Reportedly, federal agents searched Powell's home in Los Angeles and confiscated a number of electronic devices.
The investigation began last fall
The FBI and the US attorney’s office for the Northern District of California initiated the investigation in the fall of last year. No charges have been pressed against Powell so far.
A lawyer from Jenner & Block told CoinDesk in a statement that the NPO had not presented the full picture, providing a one-sided account instead. According to him, Powell has not done anything wrong and the issue is not related to his work in the crypto space.
Powell sued Verge in June 2023
Powell sued Verge in California Superior Court in June. He insists he is the owner and has rightful access to the organization’s email accounts because he’s still a member of its board. According to a lawyer for Verge, Powell's claims are baseless.
Jesse Powell cofounded Verge in 2007. The Sacramento-based organization dropped him from its board last year on grounds of having violated its guiding principles, according to The New York Times.
Kraken is not implicated
Kraken is not part of the investigation according to a spokesperson. They added the crypto exchange was aware of the conflict, the search warrants, and the investigation. According to them, authorities have advised that Kraken is not implicated in any way. The investigation does not affect Powell’s affiliation with it.
Like many crypto exchanges, Kraken has been in hot water with regulators. In February, the exchange had to terminate its staking program and paid the US SEC a $30 million fine.
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