The US Department of Justice Officially Closes the Investigation into Cryptocurrency Exchange Co-Founder Following Computer System Intrusion Allegations.
The US Department of Justice has officially closed the investigation into Jesse Powell, co-founder of the cryptocurrency exchange Kraken, according to information he confirmed on social media X on Tuesday. Powell expressed relief, saying: "It's a relief that this is over," and thanked the legal team that supported him throughout the investigation.
The investigation originated in 2023 when the FBI raided Powell's private residence in Los Angeles following allegations of unauthorized computer system intrusion and digital surveillance of the non-profit art organization Verge Center for the Arts, which he founded. According to the New York Times, the allegations were related to Powell being suspected of interfering with the organization's email system and blocking access for certain individuals.
During the investigation's conclusion, authorities returned "dozens" of laptops and mobile phones to Powell, according to Fortune. Despite serious allegations, no criminal charges were filed, and the case was officially closed without any legal consequences for the Kraken founder.
Powell emphasized the absurdity of the allegations from the beginning, comparing it to the ongoing trial of Roman Storm, the Tornado Cash developer. He shared: "It's crazy how your life can be turned upside down in an instant," while expressing gratitude to those who "saw the truth" throughout the process.
Political Context and Changes in the Cryptocurrency Asset Industry
The investigation into Powell occurred during a period when the Joe Biden administration was tightening cryptocurrency industry activities, with the SEC filing lawsuits against several major cryptocurrency asset companies, including Kraken. In 2023, Kraken agreed to pay a $30 million fine to settle the lawsuit with the SEC, reflecting the legal pressure the cryptocurrency asset industry faced under the previous administration.
However, the situation has changed significantly since Donald Trump returned to power. The new president is known to support the digital asset industry and has received financial backing from major industry names, including Kraken. Jesse Powell was noted to have committed $1 million to Trump's election campaign.
This political shift has led to the cancellation of many lawsuits against cryptocurrency asset companies, creating a more favorable environment for the industry. The FBI's conclusion of the Powell investigation can be seen as part of the trend of easing legal pressure on the cryptocurrency sector under the new administration.
Both Kraken and the US Department of Justice have not yet provided an official response to the investigation's closure. However, this move has been positively received by the cryptocurrency asset community, especially in a context where the industry is expecting a clearer and more favorable legal framework under the Trump administration's leadership.
