The FBI ended its investigation into Jesse Powell overalleged hacking of a nonprofit. Powell faces no criminal charges, and the devices seized have reportedly been returned.According to Fortune report, the FBI has officially closed its criminalinvestigation into Jesse Powell, co-founder of cryptocurrency exchange Kraken,and returned devices seized during a 2023 search. Powell faced allegations ofhacking the Verge Center for the Arts, a nonprofit he helped found, but federalprosecutors decided not to press charges.The Investigation and Its Alarming BeginningsIn 2023, the FBI launched an investigation into Powellfollowing accusations by the Verge Center for the Arts, a nonprofit he helpedfound. The nonprofit alleged Powell hacked its computer accounts and blockedaccess to key emails. As part of the inquiry, federal agents searched Powell’shome and seized electronic devices, including laptops and phones.The Justice Department dropped its probe into Kraken co-founder Jesse PowellGood scoop @jeffjohnroberts 🔥 pic.twitter.com/FiPssoGtO0— Katherine Ross (@byKatherineRoss) July 22, 2025Despite the seriousness of the allegations, courtdocuments and statements from Powell’s attorney later revealed that theinvestigation focused solely on Powell’s relationship with the nonprofit andwas not connected to his role at Kraken. Prosecutors confirmed they would not file criminalcharges and would return all confiscated devices.Legal and Regulatory ContextPowell stepped down as Kraken’s CEO in 2023 butremains involved as a board member. Kraken has faced its own challenges withU.S. regulators. The Securities and Exchange Commission (SEC) filed a complaintaccusing the exchange of operating without proper registration, but laterdropped the case and settled regulatory claims. These regulatory issues wereseparate from the FBI’s investigation into Powell.More from Kraken: Following NinjaTrader Acquisition, Kraken Opens Access to CME-Listed Crypto FuturesPowell’s political activity, including a $1 millioncrypto donation to former President Donald Trump’s 2024 campaign, drewattention amidst changing leadership at the DOJ and FBI. Still, officials have notlinked this to the probe’s conclusion.Powell has reportedly filed a civil lawsuit against Verge Center’s board members, claiming they made false statements that led to theFBI investigation. Meanwhile, Kraken is reportedly preparing for a possibleinitial public offering as early as 2026, aiming to strengthen its marketposition after years of regulatory scrutiny.This article was written by Jared Kirui at www.financemagnates.com.