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Federal agents were investigating Jesse Powell, the founder of the crypto exchange Kraken, over claims that he hacked and cyber-stalked a nonprofit arts group.
By David Yaffe-Bellany and Ryan Mac
David Yaffe-Bellany and Ryan Mac have reported on the crypto exchange Kraken and its founder, Jesse Powell, since last year.
The F.B.I. searched the home of the cryptocurrency executive Jesse Powell in March as part of a criminal investigation into claims that he hacked and cyber-stalked a nonprofit that he founded, three people with knowledge of the matter said.
The investigation focused on an allegation by the nonprofit that Mr. Powell, who also founded the cryptocurrency exchange Kraken, had interfered with its computer accounts, blocking access to emails and other messages, the people said. Agents with the F.B.I. and the U.S. attorney’s office for the Northern District of California have been looking into Mr. Powell since at least last fall, three people with knowledge of the case said.
Agents searched Mr. Powell’s home in the Brentwood neighborhood of Los Angeles and seized electronic devices, according to a person familiar with the search and documents reviewed by The New York Times. Prosecutors have not accused Mr. Powell of any crimes.
Brandon Fox, a lawyer for Mr. Powell, confirmed that he was under investigation by federal prosecutors in Northern California. Mr. Fox said the investigation was focused on the allegations by the arts group, Verge Center for the Arts, and “in no way related to Mr. Powell’s employment or his conduct in the cryptocurrency arena.” He also said Mr. Powell “did nothing wrong.”
A Kraken spokeswoman said the Verge investigation had nothing to do with the company, and that Kraken had no reason to believe that prosecutors were investigating other potential issues.
An F.B.I. representative declined to comment. A spokesman for the U.S. attorney’s office for the Northern District of California declined to confirm whether an investigation was underway.
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