Kraken Co-Founder Jesse Powell Was Investigated by FBI for Allegedly Hacking Non-Profit

<p>Jesse
Powell, the Co-Founder of the cryptocurrency exchange Kraken who <a href="https://www.financemagnates.com/executives/moves/kraken-names-dave-ripley-as-ceo-as-jesse-powell-becomes-chairman/" target="_blank" rel="follow">stepped down
as CEO</a> last year, recently faced an investigation by the Federal
Bureau of Investigation (FBI). According to the New York Times, the probe was based on allegations that he hacked and cyber-stalked a non-profit arts centre he established
in
2007.</p><p>Powell Faced Federal Investigation</p><p>The Times,
citing unnamed sources, reported yesterday (Thursday) that the Verge Centre for the
Arts, the California-based non-profit organization, accused Powell of disrupting its
computer accounts and preventing access to emails and other messages. Powell’s
lawyer confirmed the investigation to CoinDesk today (Friday).</p><p>Furthermore, the Times
in its report said the FBI and the US Attorney’s Office for the Northern District of
California have been probing Powell since at least the last fall. As part of
the investigation, FBI agents reportedly searched the crypto entrepreneur's home in Los Angeles earlier in March and confiscated electronic devices. However, the Kraken Co-Founder has not been
accused of any crimes.</p><p>In 2022,
Verge removed Powell from its Board of Directors, saying the former Kraken CEO
contravened its ‘guiding principles’, The Times reported, citing a court document. To counter the move, Powell filed a lawsuit against Verge last month, claiming that remains a Board Member of the non-profit organization, Brandon Fox, Powell’s
lawyer told CoinDesk in a statement. </p><p>The crypto entrepreneur also claimed that he owns and has
‘rightful access’ to Verge's email accounts. However, Fox pointed out that the case
is not related to the entrepreneur’s activities 'in the cryptocurrency
arena'. He added that Powell 'did nothing wrong'.</p><p>Kraken in the US</p><p>While the
case against Powell is not related to Kraken, the news comes at a difficult
time for the crypto exchange, which is the second-largest digital asset trading
platform in the United States. In February, Kraken was forced to terminate its
<a href="https://www.financemagnates.com/terms/s/staking/">staking</a>-as-a-service offering for US customers after <a href="https://www.financemagnates.com/cryptocurrency/kraken-shuts-staking-as-a-service-in-us-amid-30m-sec-settlement/" target="_blank" rel="follow">agreeing to pay $30
million</a> to the US
<a href="https://www.financemagnates.com/terms/s/securities-and-exchange-commission-sec/">Securities and Exchange Commission (SEC</a>) to settle allegations it ran the
service without permission. The regulator is also <a href="https://www.financemagnates.com/cryptocurrency/kraken-faces-sec-probe-over-unregistered-securities-listings/" target="_blank" rel="follow">reportedly probing</a> the exchange for allegedly
offering unregistered securities on its platform.</p><p>Last month, rival crypto exchanges Binance and Coinbase also came <a href="https://www.financemagnates.com/cryptocurrency/sec-lawsuit-heats-up-the-war-between-binance-and-the-us/" target="_blank" rel="follow">under the
SEC’s scrutiny</a>. Both exchanges are currently <a href="https://www.financemagnates.com/cryptocurrency/coinbase-dismisses-sec-allegations-claims-extraordinary-abuse-of-process/" target="_blank" rel="follow">defending against
charges</a> filed by
the securities watchdog.</p>

This article was written by Solomon Oladipupo at www.financemagnates.com.