Another high-profile legal case in the crypto world has come to a close. The U.S. Department of Justice has officially ended its investigation into Kraken founder Jesse Powell, confirming there will be no charges filed. As reported by Fortune on July 22, the FBI has returned over a dozen electronic devices it seized from Powell during a 2023 raid.
Jeff John Roberts
Unlike many investigations involving crypto founders, this one had nothing to do with Kraken or Powell’s crypto dealings. Instead, the case revolved around a dispute with Verge Center for the Arts, a non-profit organization Powell supported with a $1 million donation.
A Dispute Over Control, Not Crypto
According to Powell, he was improperly ousted from Verge's board despite being a major donor. He claims he was locked out of all organizational accounts and administrative systems after a boardroom shake-up. In response, Powell allegedly used administrative credentials to regain access to the nonprofit’s website—an action that led to accusations of unauthorized access and cyberstalking.
That triggered an FBI probe and the raid of his home last year. However, federal authorities have now dropped the case and returned Powell’s seized equipment, signaling a lack of sufficient evidence to pursue charges.
A Political Undercurrent?
The raid and its subsequent leak to the New York Times raised eyebrows in political and crypto circles, with some questioning whether Powell’s outspoken libertarian views and political donations played a role. In 2024, Powell made headlines for donating $1 million to Donald Trump’s campaign, positioning himself as a critic of regulatory pressure under the Biden administration—especially from SEC Chair Gary Gensler, whom Powell has accused of stifling the crypto sector.
Meanwhile, Trump, once a crypto skeptic, reversed his stance during the 2024 presidential race, pledging to make the U.S. the "crypto capital of the world." This pivot gained traction with many in the digital asset community frustrated by regulatory uncertainty.
I just personally donated $1m (mostly #ETH) to @realDonaldTrump.
— Jesse Powell (@jespow) June 28, 2024
For too long, the crypto industry has been under attack by Elizabeth Warren, Gary Gensler and others. Despite overwhelming bipartisan Congressional efforts to put clear rules in place, the Biden White House has… pic.twitter.com/Ksxf3P2oCb
With the FBI’s investigation behind him, Jesse Powell emerges from yet another turbulent chapter in crypto’s regulatory drama. While the case didn’t center on Kraken or digital assets, it underscores how personal and political tensions can overlap with the broader crypto narrative—especially as the industry becomes more entangled with public institutions and policymaking.
