2023-07-07 20:10:11
© Reuters. Former CEO of Kraken Is Investigated by the FBI; exchange denies involvement
CriptoFácil – Co-founder of cryptocurrency exchange Kraken and former CEO, Jesse Powell, is being investigated by the United States Federal Police (FBI). He allegedly hacked and harassed a non-profit organization he founded.
According to a report in The New York Times, the FBI conducted searches of Powell’s Los Angeles home as part of this investigation. In the action, agents seized electronic devices.
The organization in question is the Verge Center for the Arts, as reported by the Times. The group alleges that the former CEO of Kraken obstructed the organization’s access to emails and other messages by blocking accounts.
The sources heard by the report said that the FBI and the US attorney’s office in the Northern District of California have been investigating Powell since the end of last year. However, the Kraken co-founder has yet to be charged with any crime.
FBI Investigates Kraken Co-Founder
According to Jenner & Block attorney Brandon Fox, The Verge has not provided the government with the full picture of the situation that allegedly shows that Powell “did nothing wrong”.
Foz also reported that last month, Powell sued Verge, claiming that the organization “owns and has legitimate access” to the email accounts and that it remains a member of Verge’s board. But a lawyer for the organization called Powell’s allegations unfounded.
Powell co-founded Verge in 2007, but the organization removed him from its board in 2022. At the time, the board said the executive had violated Verge’s “guiding principles.”
Cryptocurrency exchange Kraken commented on the case and tried to step away from the investigation against Powell. In a statement shared with the press, a spokesperson for the exchange said the company is aware of the civil dispute, the investigation and the search warrants. However, the representative assured that the exchange has nothing to do with it:
“The US Attorney has advised us that Kraken is not part of the investigation in any way, and the investigation does not concern Jesse’s affiliation with Kraken,” the spokesperson said.
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