FBI Closes Two-Year Probe Into Kraken Founder, No Charges Filed

The U.S. Federal Bureau of Investigation has concluded a two-year probe into Jesse Powell, founder and CEO of cryptocurrency exchange Kraken, with no charges filed. The investigation, initiated in 2023 with the seizure of Powell’s personal devices following allegations described as “seemingly banal” by law enforcement sources, ended after the Department of Justice (DOJ) confirmed it would not pursue criminal action. Seized property, including computers and other devices, has been returned to Powell, marking the case’s formal closure [1]. The development was first reported by Bitcoin.com on July 10, 2025, with corroborating coverage from The Economic Times and Techmeme, which highlighted the procedural resolution [2][3].

The FBI’s 2023 raid on Powell’s home, linked to allegations deemed trivial, had drawn attention from the cryptocurrency community and regulatory observers. Despite the probe’s duration and intensity, officials stated the evidence fell short of meeting criminal charge thresholds. A DOJ statement, cited by MLQ.ai, reiterated that “no further action is warranted” [4]. The case’s termination underscores the agency’s focus on individual-level investigations in the crypto sector, even as broader regulatory frameworks remain under development.

For Kraken, the resolution mitigates reputational risks for the exchange. As a major global player, Kraken has navigated a complex regulatory landscape, including a $225 million settlement with the Commodity Futures Trading Commission in 2023. The FBI’s decision to close the case provides clarity for the company and stakeholders, though the industry remains under heightened scrutiny in the U.S. and Europe [1]. Analysts suggest the outcome may signal a shift in law enforcement priorities, with agencies increasingly targeting systemic risks—such as large-scale fraud or compliance failures—over isolated, low-impact incidents [5].

The case also raises questions about the efficiency of law enforcement practices in the digital asset space. While the return of seized property is standard in such closures, the two-year duration has drawn criticism. Critics argue that prolonged investigations into non-criminal matters could divert resources from addressing more pressing threats, such as vulnerabilities in major crypto platforms or cross-border regulatory enforcement gaps.

The resolution reflects broader tensions between regulatory oversight and individual rights in the evolving crypto market. Powell, a vocal advocate for decentralized finance, has faced prior regulatory scrutiny over compliance practices but has not been directly linked to Kraken’s operational risks in this case. As the industry awaits the implementation of the SEC’s proposed token offering rules and global regulatory alignment efforts, the termination of the FBI’s probe signals a pause in high-profile legal actions against individual figures.

Sources:

[1] https://news.bitcoin.com/fbi-drops-investigation-of-kraken-founder-jesse-powell/

[2] https://m.economictimes.com/crypto-news-today-live-22-jul-2025/liveblog/122821149.cms

[3] https://www.techmeme.com/?full=t

[4] https://mlq.ai/news/

[5] https://nequi.org/