FBI searched Kraken co-founder’s home in March: Report

The United States Federal Bureau of Investigation (FBI) has reportedly searched the Kraken co-founder’s home Jesse Powell in March as part of an investigation into allegations that he hacked and cyberstalked a nonprofit arts group.

Powell is alleged to have tampered with computer accounts by blocking access to e-mails and other messages from contributors to the Verge Center for the Arts, a nonprofit that Powell founded, according to to a July 6 report by The New York Times, citing three people with knowledge of the matter.

The trio told The NYT that the FBI and the U.S. Attorney’s Office for the Northern District of California have been investigating Powell since “at least” September.

Electronic devices were reportedly seized from Powell’s home in Brentwood, Los Angeles, as part of the search. However, it is understood prosecutors have not charged Powell with any crimes.

Powell’s attorney, Brandon Fox, said the investigation mostly focused on allegations made by the Verge Center for the Arts — a nonprofit organization Powell founded, and had nothing to do with Powell’s involvement in the “cryptocurrency arena.” This was allegedly confirmed by a Kraken spokesperson.

Fox also said Powell “didn’t do anything wrong.”

An inside look at the Verge Center for the Arts, founded by Powell. Source: Verge Center for the Arts

Cointelegraph reached out to Jesse Powell for comment, but did not receive an immediate response.

Related: FBI Searches Former FTX Chief Ryan Salam’s Home: Report

Powell reportedly founded the Sacramento-based artist group in 2007. His LinkedIn states that since April 2010 he has been working as a founder and member of the board of directors.

Kraken remains the second largest headquarters in the United States cryptocurrency exchange for Coinbase, according to on CoinMarketCap.

Kraken has been hit with enforcement measures by the US Securities and Exchange Commission in February for failing to register the offer and sale of their betting services program.

The firm reached a settlement with the securities regulator and paid a hefty $30 million fine.

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