DOJ and FBI End Probes of Kraken Founder Jesse Powell
US Department of Justice (DOJ) and Federal Bureau of Investigation (FBI) have formally ended their investigations into Kraken founder Jesse Powell. Federal agents raided Powell’s home in 2023 over alleged sanctions evasion and money laundering tied to Kraken’s cryptocurrency exchange and a nonprofit arts center he established. All seized devices were returned after DOJ and FBI review of transaction records and internal documents found insufficient evidence to press charges. This follows the US Securities and Exchange Commission (SEC) dropping its enforcement action against Kraken for operating as an unregistered securities exchange. Powell, who stepped down as Kraken CEO in 2022, has maintained his innocence and filed a defamation lawsuit against the Verge Center for the Arts. Crypto traders may see reduced regulatory uncertainty around Kraken’s platform, bolstering market confidence in the short term. However, broader regulatory risks in the crypto sector persist, and any direct price impact on Kraken-traded assets is expected to be limited.
Neutral
Ending of DOJ and FBI investigations into Jesse Powell removes a key overhang for Kraken. Reduced regulatory uncertainty can improve market sentiment and limit downside risk. However, with no direct charges and broader crypto regulatory scrutiny persisting, significant price movements for Kraken-listed assets are unlikely. Traders may respond with cautious optimism in the short term, but long-term market behavior will depend on wider regulatory developments.