According to sources with knowledge of the situation, in March, the US Federal Bureau of Investigations (FBI) searched the residence of Kraken co-founder Jesse Powell as part of an investigation into alleged hacking and cyberstalking of Verge Center for the Arts, a non-profit organization founded by Powell.
The investigation claims that Powell disrupted computer accounts by blocking access to emails and other messages from donors to the organization, as reported by The New York Times on July 6.
According to information provided by three sources to The New York Times, the US Federal Bureau of Investigations (FBI) and the US Attorney’s Office for the Northern District of California have been conducting an investigation into Jesse Powell since at least September. As part of this investigation, electronic devices were seized from Powell’s residence in Brentwood, Los Angeles. It’s important to note that prosecutors have not charged Powell with any crimes.
Jesse Powell’s attorney, Brandon Fox, stated that the investigation primarily revolves around allegations made by Verge Center for the Arts, a nonprofit organization founded by Powell, and does not involve his activities in the cryptocurrency industry. This statement was reportedly supported by a spokesperson from Kraken, the cryptocurrency exchange associated with Powell.
Fox also asserted that Powell did not commit any wrongdoing.
According to reports, Powell established the arts group based in Sacramento in 2007. However, his LinkedIn profile indicates that he has been serving as the founder and board member since April 2010.
As per CoinMarketCap, Kraken remains the second-largest cryptocurrency exchange in the United States, trailing behind oinbase">Coinbase. Kraken faced enforcement action from the U.S. Securities Exchange Commission in February for neglecting to register their staking service program’s offer and sale. The company ultimately settled with the securities regulator, agreeing to pay a substantial fine of $30 million.
#Crypto #Cybercrime #JessePowell #FBI
