FBI Targets Kraken Co-founder for Alleged Hacking

Jesse Powell, the co-founder of the cryptocurrency exchange Kraken, is the subject of a federal investigation into allegations that he hacked into the systems of a nonprofit and harassed its employees.

As part of the ongoing criminal investigation, the Federal Bureau of Investigation (FBI) reportedly searched Powell’s home in Los Angeles.

In the interim, the Kraken’s management has released a statement regarding the investigation.

Powell resigned as chief executive officer of Kraken in September 2022 so that he could devote more time to the company’s product side.

The United States Securities and Exchange Commission (SEC) investigated Kraken in February 2023 for violations of offering unregistered securities in the United States and settled.

The investigation led to the conclusion of a settlement.

The most recent investigation involving Powell, according to a report from The New York Times, concerned a complaint made by the Verge Center for the Arts about his interference with its computer accounts and blocking access to emails and other communications.

On the other hand, the former CEO of Kraken has stated that he committed no wrongdoing in the investigation.

A statement from the crypto exchange said:

“Kraken has been made aware that former CEO Jesse Powell is involved in a civil dispute with a nonprofit art gallery, the Verge Center for the Arts. We understand there is a federal investigation open and search warrants were executed to gather more information about the Verge matter. The US Attorney has advised us that Kraken is not a part of the investigation in any way.”

During the Thursday raid, the FBI was able to seize a variety of electronic devices.