The US Federal Bureau of Investigations (FBI) reportedly searched the home of Kraken co-founder Jesse Powell in March as part of an investigation into allegations of hacking and cyber-harassment by an arts group non-profit.
Powell is alleged to have interfered with computer accounts by blocking access to emails and other messages from contributors to the Verge Center for the Arts – the nonprofit organization founded by Powell, according to a July 6 New York Times report, citing three people with knowledge of the matter.
The FBI searched the home of cryptocurrency executive Jesse Powell in March. https://t.co/NRnK99cts7
— NYT Business (@nytimesbusiness) July 6, 2023
The trio informed the NYT that the FBI and the U.S. Attorney’s Office for the Northern District of California have been investigating Powell since “at least” September.
Electronic devices were reportedly seized from Powell’s home in Brentwood, Los Angeles, as part of the search. However, it is understood that prosecutors have not charged Powell with any crime.
Powell’s attorney, Brandon Fox, said the investigation focused primarily on allegations by the Verge Center for the Arts, the nonprofit founded by Powell, and had nothing to do with the Powell’s involvement in the “cryptocurrency arena”. This was also reportedly confirmed by a Kraken spokesperson.
Fox also said Powell “did nothing wrong.”
Cointelegraph contacted Jesse Powell for comment but did not receive an immediate response.
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Powell reportedly founded the Sacramento-based arts group in 2007. However, his LinkedIn States that he has been working as a founder and board member since April 2010.
Kraken remains the second largest US-based cryptocurrency exchange behind Coinbase, according at CoinMarketCap.
Kraken was subject to enforcement action by the U.S. Securities Exchange Commission in February for failing to register the offering and sale of its staking service program.
The company reached a settlement with the securities regulator, paying a hefty fine of $30 million.
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