Jesse Powell, the Co-Founder of the cryptocurrency exchange, Kraken who stepped down as the CEO last year, recently faced an investigation by the Federal Bureau of Investigation (FBI). According to the New York Times, the probe was based on allegations that he hacked and cyber-stalked a non-profit arts centre he established in 2007.

Powell Faced Federal Investigation

The Times, citing unnamed sources, reported yesterday (Thursday) that the Verge Centre for the Arts, the California-based non-profit organization, accused Powell of disrupting its computer accounts and preventing access to emails and other messages. Powell’s lawyer confirmed the investigation to CoinDesk today (Friday).

Furthermore, the Times in its report said the FBI and the US Attorney’s Office for the Northern District of California have been probing Powell since at least the last fall. As part of the investigation, FBI agents reportedly searched the crypto entrepreneur's home in Los Angeles earlier in March and confiscated electronic devices. However, the Kraken Co-Founder has not been accused of any crimes.

In 2022, Verge removed Powell from its Board of Directors, saying that Kraken's former CEO contravened its ‘guiding principles’, The Times reported, citing a court document. To counter the move, Powell filed a lawsuit against Verge last month, claiming that he remains a Board Member of the non-profit organization, Brandon Fox, Powell’s lawyer told CoinDesk in a statement.

The crypto entrepreneur also claimed that he owns and has ‘rightful access’ to Verge's email accounts. However, Fox pointed out that the case is not related to the entrepreneur’s activities 'in the cryptocurrency arena'. He added that Powell 'did nothing wrong'.

Kraken in the US

While the case against Powell is not related to Kraken, the news comes at a difficult time for the crypto exchange, which is the second-largest digital asset trading platform in the United States. In February, Kraken was forced to terminate its staking Staking Staking is defined as the process of holding funds in a cryptocurrency wallet to support the operations of a blockchain network. In particular, staking represents a bid to secure a volume of crypto to receive rewards. In most case however, this process relies on users participating in blockchain-related activities via a personal crypto wallet.The concept of staking is also closely tied to the Proof-of-Stake (PoS). PoS is a type of consensus algorithm in which a blockchain network aims to achieve Staking is defined as the process of holding funds in a cryptocurrency wallet to support the operations of a blockchain network. In particular, staking represents a bid to secure a volume of crypto to receive rewards. In most case however, this process relies on users participating in blockchain-related activities via a personal crypto wallet.The concept of staking is also closely tied to the Proof-of-Stake (PoS). PoS is a type of consensus algorithm in which a blockchain network aims to achieve Read this Term-as-a-service offering for US customers after agreeing to pay $30 million to the US Securities and Exchange Commission (SEC Securities and Exchange Commission (SEC) The Securities and Exchange Commission (SEC) is one of the most widely known independent authorities in the United States. The SEC has a wide range of responsibilities, helping police markets and curbing against abuse. This includes enforcing federal securities laws, proposing securities rules, and regulating the US’ stock and options exchanges.As one of the paramount regulatory authorities in the US, the SEC is responsible for the oversight of public companies in the aforementioned segments.Wha The Securities and Exchange Commission (SEC) is one of the most widely known independent authorities in the United States. The SEC has a wide range of responsibilities, helping police markets and curbing against abuse. This includes enforcing federal securities laws, proposing securities rules, and regulating the US’ stock and options exchanges.As one of the paramount regulatory authorities in the US, the SEC is responsible for the oversight of public companies in the aforementioned segments.Wha Read this Term) to settle the allegations that it operated the service without permission. On top of that, the regulator is reportedly probing the exchange for allegedly offering unregistered securities on its platform.

Last month, rival crypto exchanges Binance and Coinbase came under the SEC’s scrutiny. Currently, both exchanges are defending against charges filed by the securities watchdog.