Jesse Powell Cleared in FBI Probe as Kraken Eyes 2026 IPO

Federal authorities have officially closed a criminal investigation into Jesse Powell, co-founder and former CEO of cryptocurrency exchange Kraken. The probe, initiated in 2023 by the FBI, centered on allegations from the Verge Center for the Arts that Powell had unlawfully accessed its computer systems and blocked email access. The investigation included a search of Powell's home, during which agents seized computers, phones, and other devices.

According to court documents filed in California, Powell’s attorney was informed in April 2025 that the investigation had been concluded without any criminal charges. The U.S. Attorney’s Office later confirmed in a June letter that the case was closed as of April 8, and Powell’s seized devices would be returned.

Powell criticized the process, stating, “The FBI's raid on my house was devastating both personally and professionally... I will continue to pursue legal remedies against those who made false claims to law enforcement.”

The case’s closure comes at a pivotal moment for Kraken, which is reportedly exploring an initial public offering (IPO) by Q1 2026. Powell stepped down as Kraken’s CEO in 2023 but remains a member of the board.

Kraken continues to rank among the largest U.S.-based crypto exchanges, though it has faced regulatory pressure. In 2023, the platform settled with the SEC and agreed to terminate its U.S. staking services.

The end of the investigation removes a significant obstacle for both Powell and Kraken, particularly as the exchange positions itself for greater public scrutiny ahead of a potential IPO. Powell's legal victory also underscores the growing tension between crypto leaders and U.S. enforcement agencies amid evolving regulations.