FBI Drops Probe Into Kraken Founder Powell Before 2026 IPO
FBI drops its probe into Kraken founder Jesse Powell following a management dispute with the Verge Center for the Arts, returning all seized devices. No charges were filed, fully clearing Powell of criminal wrongdoing and removing a legal overhang for Kraken as it eyes a 2026 IPO. Powell alleges Verge board members misled law enforcement and plans a civil defamation suit. In 2023, Kraken settled with the SEC and ended U.S. staking services amid tightening crypto regulations. Powell, now on Kraken’s board, also made headlines with a $1 million crypto donation to Donald Trump’s 2024 campaign; officials found no link to the probe. The resolution strengthens Kraken’s regulatory compliance profile and may boost trader confidence ahead of its potential market debut.
Bullish
Dropping the FBI investigation removes a major legal overhang and uncertainty that had weighed on Kraken. Traders value regulatory clarity; the resolution may boost confidence in Kraken’s platform stability and future growth. Coupled with Kraken’s 2023 SEC settlement and the end of U.S. staking services, this positions the exchange favorably under tighter crypto regulations. As Kraken eyes a 2026 IPO, the cleared legal path could attract institutional and retail interest, potentially lifting trading volumes and market sentiment. Overall, the news serves as a bullish catalyst for Kraken-related trading pairs.