When federal agents raided the home of Kraken founder Jesse Powell two years ago, the Justice Department was in the midst of a sweeping legal campaign against the cryptocurrency industry. The raid, however, had nothing to do with how Powell operated his crypto exchange but instead stemmed from a management dispute with an arts non-profit he had founded. The Justice Department has now dropped the investigation and returned dozens of laptops and cellphones it seized from Powell’s home—but questions remain about why the agency pursued him so aggressively, and how news of the raid leaked to reporters at the New York Times.
Powell is a well known figure in the crypto industry. Along with building Kraken, an early cryptocurrency exchange that is on its way to go public, Powell is known for his outspoken political views that he frequently shares on social media. In 2022, the New York Times published an unflattering profile, highlighting Powell’s comments to Kraken staff that challenged progressive orthodoxy on topics like pronouns and gender.
