March 2023 FBI raided the home of the former head of the Kraken crypto exchange, Jess Powell, as part of a criminal investigation on charges of hacking a non-profit organization he founded. It is reported by The New York Times.
According to sources, the feds opened a case against the entrepreneur in the fall of 2022. Verge Arts Center officials said Powell hacked into the company’s computers, preventing access to email and other communications.
During searches of the home of the former CEO of the trading platform, the FBI seized electronic devices. At the same time, law enforcement officers have not yet filed any charges.
Jenner & Block lawyer Brandon Fox confirmed that Powell is under investigation. According to him, the investigation “is in no way related to his work in the cryptocurrency industry.”
He also believes that the co-founder of the exchange “did nothing wrong”, and Verge “provided a one-sided and incomplete report.”
In June, Powell sued the arts center, claiming he had full access to the organization’s accounts because he was on its board of directors.
The businessman co-founded Verge in 2007, but the company removed him from the board in 2022 for violating “guidelines.”
Recall that last fall, Jess Powell left the post of CEO of the exchange. He explained that his departure was dictated by a desire to spend more time working on products and “protecting the interests of the industry.”
The District Court for the Northern District of California previously ordered Kraken to provide the IRS with customer information.
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