Federal law enforcement is investigating Crypto exchange Kraken co-founder Jesse Powell on claims that he hacked and cyberstalked a non-profit that he founded, according to a report by The New York Times on Thursday. The Verge Center for the Arts has accused Powell of hindering its computer accounts, obstructing access to emails and other messages. Agents have searched Powell’s Brentwood home in Los Angeles’ Westside, seizing electronic devices.
Brandon Fox, a lawyer with Jenner & Block, said in a statement that Verge “provided a one-sided account that did not provide the government with the full picture, showing that Powell “did nothing wrong.” Fox added that the matter is unrelated to “Mr. Powell’s employment or his conduct in the cryptocurrency arena.” Last month, Powell sued Verge in California Superior Court, claiming that he “owns and has rightful access” to the email accounts and that he remains a Verge board member.
A Kraken spokesperson said in a statement that the exchange was aware of the civil dispute, investigation and search warrants. “The US Attorney has advised us that Kraken is not a part of the investigation in any way, and the investigation does not concern Jesse’s affiliation with Kraken,” the spokesperson said.
The New York Times reported that Powell had been removed from Verge’s board in 2022, saying that he had violated Verge’s “guiding principles.”