After three years of federal investigation, the FBI finally returned Jesse Powell’s electronic devices without filing any charges. The Kraken founder faced allegations of hacking into his former nonprofit’s Slack channels and emails following a messy 2022 board dispute at Sacramento’s Verge Center for the Arts. The Department of Justice issued a declination letter, officially closing the case. Powell can now focus on his crypto exchange without federal agents breathing down his neck, though the nonprofit drama revealed how personal disputes can quickly spiral into something much bigger.
The FBI finally gave Jesse Powell his stuff back. After three years of holding onto his laptops and phones, federal agents returned the Kraken founder‘s electronic devices in July 2025. The investigation? Over. The charges? None.
This whole mess started back in 2008 when Powell co-founded the Verge Center for the Arts, a Sacramento nonprofit. Fast forward to 2022, and things got ugly. The board kicked Powell out. He allegedly wasn’t too happy about it.
According to Verge, Powell went rogue. They claimed he hacked into their Slack channels, emails, and other communication systems after getting the boot. Cyberstalking was another accusation thrown around. The nonprofit said he blocked their access to their own accounts. Powell had a different story.
The FBI took this seriously enough to raid Powell’s Los Angeles home in March 2022. They grabbed dozens of devices. Laptops, cell phones, anything with digital data. Powell called the whole ordeal “devastating” while it dragged on.
Here’s the kicker: the returned devices apparently contain information that backs up Powell’s version of events. Funny how that works out. The Department of Justice sent a declination letter, formally closing the case. No criminal charges. No press releases. Just a quiet conclusion to what became a very public headache.
Powell didn’t just sit there and take it. He filed civil claims against some board members, alleging mismanagement and breach of fiduciary duty. Because why not fight back when you’re already in the mud?
The crypto community watched this unfold with interest. Powell founded Kraken, after all. Kraken has been known for its strong security measures and regulatory compliance efforts throughout its history. But this had nothing to do with cryptocurrency operations. This was personal nonprofit drama that spiraled into federal investigation territory. The case highlights the challenges of applying traditional legal frameworks to emerging sectors where personal disputes can quickly escalate into federal matters.
Powell expressed relief when everything wrapped up. He could finally focus on Kraken again without the FBI breathing down his neck. Three years of investigation, no wrongdoing found, devices returned. Sometimes the system works slowly, but it works.
The Verge Center dispute remains a footnote in Powell’s career. A messy, expensive footnote.
