Jesse Powell, co-founder and ex-CEO of Kraken – the prominent crypto exchange, has surfaced in the limelight as one more eminent character in the crypto sphere garnering the examination of federal authorities. The Federal Bureau of Investigation previously scoured Powell’s Los Angeles dwelling and confiscated his electronic devices. Moreover, the U.S. attorney’s office for Northern District of California’s interest in Powell reportedly started in the fall, with a significant share of their attention being committed to inquire into allegations of Powell meddling with computer accounts and email access linked to a non-profit ensemble.
The non-profit entity, Verge Center for the Arts, allegedly ousted Powell from its board due to his habitual absence from meetings and contraventions of the organization’s principles. The bone of contention, as stated in a letter from Verge’s legal representative to Kraken, is the unauthorized entrance to confidential information from their accounts and deliberate encumbrance of their email and website services, purportedly orchestrated by Powell himself.
However, Powell remains a suspect without any formal allegations of criminal deeds. His attorney, Brandon Fox, has corroborated Powell being under investigation, while insisting the probe does not include Kraken or mirror Powell’s actions within the crypto sphere. A statement from Kraken has also reinforced this, suggesting that neither Kraken nor Powell’s affiliation with the exchange are under scrutiny.
In response, attorney Brandon Fox has disputed Verge’s narration of events, pinpointing the possibility of an innuendo-riddled, incomplete account of events given to the government authorities. He projected that a more detailed account would clarify Powell’s innocence. This accusation-counter accusation scenario introduces a certain complexity that can’t be brushed over. “The account needs to be fair, not one-sided,” Fox said while asserting Powell’s innocence.
Adding to this frenetic turn of events, Powell has also taken legal recourse against Verge after his ouster from the board. In an email, represented by his lawyer, he alleges that Verge conducted a sneaky board meeting sans his knowledge, during which he was dropped from his director’s responsibilities. In addition, he was also accused of unauthorized access to certain online accounts, many of which were reportedly registered to Powell himself.
While the future remains to be seen, the crypto community will no doubt be watching closely as Powell combats these allegations, with the outcome resonating far beyond just the individuals involved.
Source: Cryptonews
