FBI Searches Home of Kraken Founder Jesse Powell in Cyberstalking Case

• A Kraken representative clarified that the crypto exchange was in no way involved in the investigation.
• The FBI conducted a search at the home of Jesse Powell in connection with the cyber-stalking case of Verge.
• Verge, which Powell cofounded, had removed him from the organization after they faced ideological differences.

In connection with a case of cyber-stalking and hacking, the Federal Bureau of Investigation (FBI) searched the home of Jesse Powell, the founder of the crypto exchange Kraken. The search was conducted following claims that Powell hacked and cyber-stalked the non-profit arts organization Verge, which he himself founded.

Verge alleged that Powell had interfered with their computer accounts and blocked access to their emails and other messages. Reportedly, the agents searched Powell’s home in Los Angeles and confiscated electronic devices. However, a Kraken representative made it clear that the crypto exchange was in no way affected or involved in the investigation.

Just last month, the Kraken founder sued Verge alleging that he had rightful access to their email accounts since he was still a board member. However, the Times reported that Verge’s lawyer asserted these claims were baseless. Even though Powell co-founded Verge in 2007, the arts organization discharged him from the board in 2022, claiming he violated the company’s guiding principles. 

The decision to remove Powell from the organization came after the Times published an article about the crypto entrepreneur. The article detailed how Powell tried to incite a culture war in the organization by asking his employees bizarre political questions such as “If you can identify as a sex, can you identify as a race?” and “Who can refer to another person as the N-word?” He apparently also remarked on women’s intelligence in a derogatory way.

In related news, Kraken was asked to provide information about its users to the Internal Revenue Service just last week. The court ordered the exchange to share details of its customers who were involved in transactions of over $20,000 last year. Kraken had called this request an “unjustified treasure hunt.”

Kraken has had several legal troubles in the last year alone. In November 2022, the exchange agreed to pay $360,000 to the Treasury Department to settle sanction violations for offering services to users in Iran. After this, it produced a 30 million fine to the SEC for allegedly violating securities laws.