US DOJ drops probe into Kraken co-founder Jesse Powell over nonprofit allegations: Fortune

The U.S. Justice Department has dropped its investigation into Kraken co-founder Jesse Powell tied to a nonprofit group, according to reporting from Fortune. Authorities searched Powell's Los Angeles home and took electronic devices in 2023 as part of an investigation into claims he hacked and cyber-stalked a nonprofit arts group, The New York Times previously reported.In 2023, the nonprofit alleged that Powell interfered with its computer accounts, including blocking access to emails and other messages, according to people with knowledge of the matter who spoke to The New York Times. Powell has said he did not stalk or hack anyone and alleged that the nonprofit Verge Center for the Arts executives tried to remove him from the board, Fortune reported on Tuesday. The DOJ did not immediately respond to a request for comment. Powell told Fortune that the Federal Bureau of Investigation's raid was "devastating both personally and professionally." Powell, who co-founded the Kraken exchange, stepped down as CEO in 2022 and he is currently the chair of its board of directors.The Justice Department's probe happened as crypto firms were being sued by federal regulators over charges related to not registering properly and fraud. A Kraken spokeswoman told the New York Times in 2023 that the investigation into Powell has nothing to do with the company and that it had no reason to believe that prosecutors were looking into other potential issues. Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.© 2025 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.