The criminal investigation is inquiring into Verge Center for the Arts’ accusations that Powell hindered its computer accounts, obstructing access to emails and other messages
Cryptocurrency exchange Kraken co-founder Jesse Powell is being probed by Federal law enforcement on allegations that he hacked and cyberstalked a non-profit entity that he founded, a lawyer for Powell confirmed followng a report by The New York Times Thursday.
The criminal investigation is inquiring into Verge Center for the Arts’ accusations that Powell hampered its computer accounts, hindering access to emails and other messages, The Times reported, citing unnamed sources.
The paper reported that agents had searched Powell’s home, taking hold of electronic devices and said that law enforcement agencies have been probing Powell since at least the fall.
Powell has not been accused of any crimes. Brandon Fox, a lawyer with Jenner & Block, said in a statement shared with CoinDesk that Verge provided a one-sided account that did not provide the government with the complete picture, showing that Powell did nothing wrong. Fox further said that the matter is unrelated to “Mr. Powell’s employment or his conduct in the cryptocurrency arena.”
In May, Powell sued Verge in California Superior Court, contending that he “owns and has rightful access” to the email accounts and that he remains a Verge board member, Fox added. A lawyer for Verge said that Powell’s claims were baseless, according to The Times.
Powell co-founded Verge in 2007, but the organization removed him from its board last year, saying that he had breached Verge’s “guiding principles,” The Times reported.
In a statement shared with CoinDesk, a Kraken spokesperson said the exchange was aware of the civil dispute, probe and search warrants.
The US Attorney has advised us that Kraken is not a part of the probe in any way, and the probe does not concern Jesse’s affiliation with Kraken, the spokesperson added.
