Former Kraken CEO Jesse Powell’s home was raided by the FBI as part of a criminal investigation into allegations of hacking and harassment.
The investigation is unrelated to Kraken as a company, but it highlights the growing regulatory scrutiny faced by crypto exchanges.

The cryptocurrency community was shaken today as news broke, according to reports from The New York Times, of the FBI raid on the home of Jesse Powell, the former CEO of Kraken, one of the leading crypto exchanges. The raid is part of a criminal investigation into allegations that Powell hacked and cyber-stalked a non-profit organization, the Verge Center for the Arts.

According to reports, the Verge Center for the Arts filed a complaint accusing Powell of interfering with its computer accounts and blocking access to emails and other communications. The FBI and the U.S. attorney’s office have been looking into Powell since at least last fall. The raid on Powell’s home in Los Angeles resulted in the seizure of electronic devices.

Despite the investigation, Powell maintains his innocence. His lawyer, Brandon Fox, confirmed that his client is under investigation but stated that the allegations are unrelated to Powell’s employment or conduct in the cryptocurrency industry. The Kraken management also released a statement affirming that the investigation has no connection to the company and that they are not involved in any way.

The timing of the raid raises questions, as Powell stepped down as the CEO of Kraken in September 2022 to focus on the product side of the business. This comes after Kraken itself faced an investigation by the U.S. Securities and Exchange Commission (SEC) earlier this year for offering unregistered securities. A settlement was reached following the investigation.

The crypto community has been closely following the recent crackdown on cryptocurrency exchanges by federal investigators. Several competitors of Kraken, including FTX, Coinbase, and Binance, have faced legal challenges and government lawsuits. The raid on Powell’s home adds to the growing list of regulatory actions taken against prominent figures in the crypto industry.

The outcome of the investigation into Jesse Powell remains uncertain, as no charges have been filed against him at this time. The crypto community awaits further updates on the situation, which has sent shockwaves through the industry. The incident serves as a reminder of the increased regulatory scrutiny faced by crypto exchanges and their executives.

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Filed under: Bitcoin - @ July 8, 2023 7:06 am