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<p><strong>There is something fishy around Kraken, now Jesse Powell is also under investigation.</strong></p> 
<h2 style="text-align: center;" id="investigation-initiated">Investigation Initiated</h2> 
<p>Kraken co-founder, Jesse Powell, has come under federal scrutiny over allegations of hacking and cyberstalking linked to the Verge Center for the Arts, a non-profit organization Powell helped establish. The <a href="https://www.nytimes.com/2023/07/06/technology/jesse-powell-kraken-crypto-fbi.html?smtyp=cur&amp;smid=tw-nytimesbusiness" target="_blank" rel="noopener">New York Times confirmed this information in a recent report</a>.</p> 
<h2 style="text-align: center;" id="powell-s-residence-searched">Powell’s Residence Searched</h2> 
<p>Federal agents have conducted a search of Powell’s residence in Brentwood, Los Angeles, confiscating several electronic devices in the process. The U.S. attorney’s office for the Northern District of California and the FBI are spearheading the ongoing investigation, which started last fall.</p> 
<blockquote class="twitter-tweet"> 
 <p dir="ltr" lang="en">Kraken co-founder Jesse Powell is being investigated by Federal law enforcement on claims he hacked and cyberstalked a non-profit. The FBI searched his LA home, seizing electronic devices. Through a lawyer, Powell denied any wrong-doing.</p> 
 <p>By <a href="https://twitter.com/JPRubin23?ref_src=twsrc%5Etfw">@JPRubin23</a><a href="https://t.co/vvs1KyGHkO">https://t.co/vvs1KyGHkO</a></p> 
 <p>— CoinDesk (@CoinDesk) <a href="https://twitter.com/CoinDesk/status/1677122133594341377?ref_src=twsrc%5Etfw">July 7, 2023</a></p>
</blockquote> 
<p><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></p> 
<h2 style="text-align: center;" id="no-formal-charges">No Formal Charges</h2> 
<p>Powell’s lawyer, Brandon Fox, asserts that his client has committed no wrongdoing and the ongoing probe has nothing to do with Powell’s activities in the cryptocurrency field. It’s important to note that no charges have been filed against Powell thus far.</p> 
<h2 style="text-align: center;" id="lawsuit-against-verge">Lawsuit Against Verge</h2> 
<p>Powell filed a lawsuit against Verge recently, asserting that he maintains ownership and rightful access to certain disputed email accounts, and he remains a board member of the organization. Verge’s legal team disputes these claims.</p> 
<h2 style="text-align: center;" id="kraken-stance">Kraken Stance</h2> 
<p>Kraken, <a href="https://walletinvestor.com/magazine/krakens-canada-customer-deposits-rose-25-after-binance-announced-departure" target="_blank" rel="noopener">a top-tier cryptocurrency exchange</a> co-founded by Powell, has acknowledged the investigation. A spokesperson from the organization emphasized that the probe does not involve Kraken or Powell’s role within the company.</p> 
<h2 style="text-align: center;" id="regulatory-issues-with-kraken">Regulatory Issues with Kraken</h2> 
<p>Kraken has previously faced regulatory challenges. Earlier this year, they agreed to pay a $30 million fine to settle an enforcement action by the U.S. Securities Exchange Commission related to their staking service program.</p> 
<h2 style="text-align: center;" id="summary">Summary</h2> 
<p>Jesse Powell, co-founder of Kraken, faces a federal investigation over claims of hacking and cyberstalking related to Verge Center for the Arts, a non-profit he founded. Federal agents have searched Powell’s residence and confiscated several electronic devices, although no charges have been formally filed. Powell’s lawyer insists his client is innocent and the probe is unrelated to his cryptocurrency activities. Powell recently sued Verge, claiming rightful ownership and access to certain email accounts. Kraken, the crypto exchange Powell co-founded, confirms it’s not involved in the ongoing investigation. Earlier this year, Kraken settled a $30 million fine with the U.S. Securities Exchange Commission over its staking service program.</p>

Investigation Surrounding Jesse Powell, Kraken Co-Founder

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