After nearly two years of scrutiny, the FBI has officially closed its investigation into Kraken founder Jesse Powell. The probe, which sparked headlines following a dramatic raid on Powell’s home, centered on allegations unrelated to his crypto business. With no charges filed and all seized devices returned, Powell is now cleared of any wrongdoing. This development marks a key moment for both Powell and the broader crypto community amid growing regulatory attention.

FBI Ends Two-Year Jesse Powell Investigation

The Federal Bureau of Investigation (FBI) has concluded its investigation into Jesse Powell, the founder of U.S.-based cryptocurrency exchange Kraken. The case, which lasted for nearly two years, involved allegations unrelated to digital assets or the operations of Kraken.

According to a report by Fortune, the investigation focused on a dispute between Powell and Verge Center for the Arts, a non-profit organization he helped establish. Powell was accused of cyberstalking and unauthorized access to company systems amid a management disagreement. In 2023, federal authorities raided his residence and confiscated electronic devices, including phones and laptops, to support their investigation.

Powell later filed a civil lawsuit against Verge, asserting that he had not committed any cyber offenses. He claimed that the accusations were part of an internal power struggle following attempts to remove him from the board. He also stated that Verge’s executive team had restricted his access to essential organizational accounts without proper notice.

The U.S. Department of Justice has since dropped the case and returned all seized devices. Court documents indicate the devices contain evidence supporting Powell’s claims.

“The FBI’s raid on my house was devastating both personally and professionally,” Powell said in a public statement. “It is still shocking that the raid was premised on Verge Center for Arts’ baseless accusation against me.”

No Crypto Ties to the Jesse Powell Probe

Despite Powell’s strong association with the cryptocurrency sector, the FBI investigation did not focus on Kraken or any digital asset-related matter. Authorities clarified that the matter was limited to personal and administrative disputes tied to the Verge non-profit.

At the time of the raid, Bitcoin was trading at around $23,000. Some in the community speculated that the devices might hold crypto keys. But there were no reports or submissions that it found Bitcoin or other assets on the confiscated devices.

Even during the investigation, Kraken kept itself in business. Some of the products introduced through the platform were tokenized U.S. equities and multi-chain support of digital assets.

Kraken Moves Ahead Amid Regulatory Shifts

Kraken has been able to stick to its growth plan despite the regulatory environment mutating in the U.S. The company is said to be considering an initial public offering, launching more assets. The end of Powell investigation can be brought with more clarity to the company with regard to regulations.

In the meantime, other U.S. exchanges have to gain as well. Coinbase and Gemini are growing into foreign territories, and are also responding by turning towards regulatory issues in the U.S.

Powell’s legal case and its resolution arrive at a time when law enforcement agencies appear to be shifting their focus on how they approach cryptocurrency-related investigations. The end of the Powell probe adds to a series of recent decisions where law enforcement refrained from pursuing charges despite extensive inquiries.

No further updates from federal agencies are expected at this time. Kraken has not issued an official comment on the investigation’s closure. Powell’s civil suit against Verge remains pending.