U.S. DOJ Closes Case Against Kraken Founder Jesse Powell Citing Personal Dispute No Charges Filed (13 words, adheres to factual accuracy, highlights causality, and avoids speculative elements while emphasizing the legal resolution.)

The U.S. Department of Justice has officially closed its criminal investigation into Jesse Powell, the founder and former CEO of cryptocurrency exchange Kraken, concluding that no charges will be filed. The decision follows a multi-year probe into allegations that Powell, 45, unlawfully accessed digital accounts belonging to the Verge Center for the Arts, a nonprofit he co-founded in 2007. In a recent development, the DOJ ordered the FBI to return all electronic devices seized during a 2022 raid on Powell’s Los Angeles residence, effectively terminating the case.

The investigation, which spanned over two years, originated from claims by Verge that Powell had blocked access to the nonprofit’s email and Slack communications. The FBI executed a search warrant at Powell’s home in March 2022, seizing dozens of devices. At the time, authorities were examining whether Powell’s actions constituted digital interference or harassment. Brandon Fox, Powell’s attorney, clarified that the allegations were unrelated to Kraken’s operations or Powell’s career in the cryptocurrency industry. “The case has always been about a personal dispute, not any business conduct,” Fox stated, emphasizing that the DOJ’s “declination letter” formally closes the matter.

Powell has consistently denied the accusations, both publicly and in legal filings. He filed a civil lawsuit in 2024, alleging that Verge board members orchestrated a power grab and fabricated claims to remove him from the organization. In court documents, he asserted that Verge executives secretly changed domain names and created new accounts to displace him. The FBI raid, he argued, was based on “baseless accusations” and caused significant personal and professional distress. Fox highlighted that evidence recovered during the raid, including internal Verge communications, supports Powell’s defense, further solidifying the DOJ’s decision to drop the case.

The legal battle has had broader implications for Powell and Kraken. While the founder has been exonerated in this particular case, the cryptocurrency exchange faces ongoing scrutiny from U.S. regulators. Kraken has previously settled with the Treasury Department over sanctions violations and paid a $30 million fine to the Securities and Exchange Commission for offering unregistered investment products. These issues, however, are distinct from the Verge investigation and underscore the challenges of operating in a highly regulated financial landscape. For Powell, the resolution of the DOJ case is a vindication of his claims and a step toward mitigating reputational damage in an industry where regulatory clarity remains elusive.

As the cryptocurrency sector continues to grapple with evolving legal frameworks, the outcome of Powell’s case highlights the complexities of navigating personal and corporate legal disputes. The dismissal of federal charges allows Powell to focus on other ventures, though Kraken’s relationship with regulators remains a work in progress. The case also serves as a reminder of the delicate balance between digital rights, corporate governance, and the enforcement of laws in an increasingly interconnected world.