FBI searched Kraken co-founder’s home in March.

The Federal Bureau of Investigations (FBI) in the United States reportedly conducted a search of Jesse Powell’s home in March. Powell is a co-founder of Kraken and is being investigated for alleged hacking and cyber-stalking activities against a nonprofit arts group.

According to The New York Times, Powell is accused of interfering with computer accounts by blocking access to emails and messages from contributors of the Verge Center for the Arts, a nonprofit organization he founded. The investigation has been ongoing since at least September 2022, led by the FBI and the U.S. Attorney’s Office for the Northern District of California.

The F.B.I. searched the home of the cryptocurrency executive Jesse Powell in March. https://t.co/NRnK99cts7

— NYT Business (@nytimesbusiness) July 6, 2023

During the search, electronic devices were seized from Powell’s home in Brentwood, Los Angeles. However, Powell has not been formally accused of any crimes by the prosecutors.

Powell’s lawyer, Brandon Fox, stated that the investigation primarily focuses on the allegations made by the nonprofit and is unrelated to Powell’s involvement in the cryptocurrency industry. This claim was reportedly confirmed by a spokesperson from Kraken.

Fox also emphasized that Powell has done nothing wrong.

Cointelegraph attempted to contact Jesse Powell for comment, but there has been no immediate response.

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Reportedly, Powell founded the arts group in Sacramento in 2007, but his LinkedIn profile states that he has been a founder and board member since April 2010.

According to CoinMarketCap, Kraken is currently the second largest cryptocurrency exchange based in the United States, following Coinbase.

In February, Kraken faced enforcement action from the U.S. Securities Exchange Commission for failing to register their staking service program. The firm reached a settlement with the regulator, paying a fine of $30 million.

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