TL;DR
- Two years ago, federal agents raided the home of Jesse Powell, Kraken’s founder, in an investigation that the DOJ has just closed.
- The raid was linked to an internal dispute with Verge, an arts organization founded by Powell, and had no connection to Kraken or crypto activities.
- Powell accuses Verge executives of conspiring to remove him from the board and creating new accounts without his authorization, which led to an ongoing civil lawsuit.
Two years ago, federal agents raided the residence of Jesse Powell, founder of the Kraken exchange, during an investigation that the Department of Justice has now closed
The raid was unrelated to Kraken’s management or crypto operations, but stemmed from a conflict within Verge, a nonprofit arts organization Powell founded in 2008. After the investigation, the FBI returned dozens of electronic devices seized, including laptops and phones, which contain evidence supporting Powell’s account.
The legal dispute between Kraken’s founder and Verge centers on access to work accounts like Slack and Google. According to documents filed by Powell, no hacking or stalking occurred. Instead, Verge executives allegedly conspired to remove him from the board. They changed the domain and created new accounts without his knowledge, prompting the civil lawsuit Powell filed last year.
Powell Felt Devastated by the Raid
Powell described the police raid as devastating to his personal and professional life, and continues his lawsuit against Verge’s members. He also accused two board members, including Phil Cunningham—who also acts as Verge’s lawyer—of withholding key documents during the legal process. Cunningham declined to comment.
The Department of Justice has not issued statements about closing the case nor explained how investigation details leaked to outlets like the New York Times. Meanwhile, Verge remains active in Sacramento’s arts scene despite ongoing litigation.
Kraken Can Now Focus on Its IPO
An important detail in the case is the value of Bitcoins stored on the confiscated devices. At the time of seizure, BTC traded around $23,000, a figure now exceeding $120,000, though it is unknown if Powell recovered those digital assets.
The investigation’s closure clears the way for Powell to concentrate on Kraken, which is preparing to go public, while the legal battle with Verge continues
