FBI investigates former Kraken CEO's residence in the United States, lawyer responds: Unrelated to Kraken

According to sources familiar with the matter who spoke to The New York Times, the news of the FBI entering and searching the residence of former CEO of the U.S. exchange Kraken, Jesse Powell, was related to a private dispute between Powell and an art collective. Powell's lawyer has confirmed this and explained that the investigation is focused on allegations of cyberattacks and stalking against the art organization, not related to Kraken. It is reported that the FBI entered and investigated Powell's residence in March.

Powell Accused of Hacking Art Group to Steal Private Information

According to a report by The New York Times, FBI searched the residence of Jesse Powell, the former CEO of the second-largest U.S. exchange Kraken, in March, but the investigation is unrelated to Kraken.

The FBI and local prosecutors have been investigating Powell since at least last fall over allegations related to Verge, a nonprofit art gallery he founded, accusing Powell of hacking and tracking the art organization's online activities, blocking their email and message usage. Authorities have searched his Los Angeles home and seized related electronic devices.

Court documents cited in the report show that Powell founded the art group Verge in 2007, but he was removed from the board last year for failing to attend board meetings and making discriminatory remarks against the organization's guiding principles.

However, since then, Powell has been blocking Verge from using its website, email, and internal systems, and illegally accessing confidential information stored in these accounts.

Lawyer's Response: The Incident is a Private Dispute, Not Targeting Kraken

Powell's lawyer, Brandon Fox, has confirmed the news to The New York Times, stating:

Powell is under investigation by the prosecutors, focusing on the allegations against the art group, and not related to his identity or role in the cryptocurrency field.

At present, no charges have been filed against him, and prosecutors have declined to comment on all reports.

FOX reporter Eleanor Terrett also quoted Kraken's statement:

This investigation is unrelated to Kraken, as stated by U.S. prosecutors, and we will not be involved in any form of investigation.

Previously, as a key figure in cryptocurrency history, Powell resigned as Kraken CEO in September last year, becoming a board member and focusing on product development and industry advocacy. Kraken, a veteran exchange founded in 2011 by Powell, is currently the third-largest spot exchange by trading volume globally, following Binance and Coinbase.