The FBI concluded its investigation into Jesse Powell’s alleged hacking of nonprofits. Powell faces no criminal charges, and the equipment reportedly seized was returned.

According to the Fortune report, the FBI has officially closed a criminal investigation into cryptocurrency exchange co-founder Jesse Powell Clekenand the returned equipment was seized in the 2023 search. Powell faces allegations of violating the Virgil Center for the Arts by the nonprofit he helped find, but federal prosecutors decided not to file a lawsuit.

The Investigation and its Shocking Beginning

In 2023, the FBI investigated Powell after Verge Arts’ allegations, a nonprofit he helped discover. The nonprofit allegedly hacked its computer account and blocked access to key emails. As part of the investigation, federal agents searched Powell’s home and seized electronic devices, including laptops and phones.

Justice Department puts investigation into Cleken co-founder Jesse Powell Goode Spoon @JeffJohnRoberts 🔥 pic.twitter.com/fipssogto0

— Katherine Ross (@bykatherineross) July 22, 2025

Despite the serious allegations, Powell’s attorney’s court documents and statements later revealed that the investigation focused solely on Powell’s relationship with the nonprofit and had nothing to do with his role in Cracon. Prosecutors confirmed that they would not file criminal charges and would return all confiscated equipment.

Legal and regulatory environment

Powell resigned as CEO of Kraken in 2023 but remains on the board. Kraken faces its own challenges in U.S. regulators. Securities and Exchange Commission (Second) filed allegations that exchange operations were not properly registered, but the case was later revoked and regulatory claims were resolved. These regulatory issues are separated from the FBI’s investigation into Powell.

More information from Kraken: After Ninja acquisition, Kraken opens access to CME-listed cryptocurrency futures

Powell’s political campaign, including donating $1 million in cryptocurrency to former President Donald Trump’s 2024 campaign, has attracted attention amid changing leadership of the Department of Justice and the FBI. Nonetheless, officials have not yet linked it to the conclusions of the investigation.

Powell has reportedly filed a civil lawsuit against Verge Center’s board members, claiming they made misrepresentations, leading to an FBI investigation. Meanwhile, Kraken is reportedly preparing for a possible IPO as early as 2026, aiming to strengthen its market position after years of regulatory scrutiny.

This article was written by Jared Kirui on www.financemagnates.com. (Tagstotranslate) Kraken



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