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Breaking: FBI Has Raided the House Of Kraken’s Former CEO

ShahZaib Ahmed



The prominent crypto exchange Kraken is currently going through a very difficult scenario as the US Federal Bureau of Investigation (FBI) has conducted a raid on the house of Jesse Powell (the former chief executive officer of Kraken). Powell is also categorized among the co-founders of the well-known crypto exchange. The respective search, which was reportedly carried out back in March this year, was included in a broad-ranging investigation.

FBI Conducts a Raid on the House of the Ex-CEO of Kraken

The focus of that investigation was to find out the truth of the allegations related to cyber-stalking as well as hacking directed at a philanthropic arts group. As per The New York Times, the news outlet that recently highlighted this issue with insights from 3 informed people, it is linked to the cleverly handled computer accounts of Powell.

With those accounts, the culprits allegedly obstructed access to important emails as well as the rest of the communication channels used by parties contributing to the non-profit platform. As included in the search, the investigation agency reportedly confiscated diverse electronic devices from the residence of Powell in Los Angeles-based Brentwood.

Although this action points toward a serious inquiry, a crucial thing to be noted is that no criminal offenses have officially been levied against Powell by the prosecutors. Keeping this in view, the allegations raised against the former Kraken CEO still hand in an uncertain state. His engagement with the arts group is quite lengthy and dates back to the year 2007, as mentioned in the records of the organization.

Nonetheless, Powell’s LinkedIn profile brings to the front that he has been operating as the board member and founder of the platform since 2010’s April. This provides some clarification regarding his character within the non-profit company. The New York Times reported that the insiders acquainted with the issue are of the view that the investigation chiefly deals with the assertions that Verge Center for Arts made.

The primary concern of the respective assertions was the alleged actions of Powell within the organization. It is of great importance that Brandon Fox (the person who plays the role of Powell’s legal advisor) stressed that scrutiny has nothing to do with the engagement of Powell in the crypto industry. This was reportedly mentioned in a statement validated by a Kraken spokesperson.

Formerly, the famous crypto exchange faced enforcement action carried out by the United States Securities and Exchange Commission (SEC) back in February. The US securities regulatory agency accused the crypto exchange of allegedly neglecting its responsibility to get a registration with it in the case of the staking service project.

Kraken Faces Enforcement Action from the SEC and Settles the Case

As per it, the respective registration was necessary for Kraken legitimately offer as sale of the respective product. In this way, the crypto exchange allegedly infringed the regulatory requirements imposed within the US jurisdiction. Nevertheless, rather than involving in lengthy legal battles, the crypto exchange moved toward a settlement with the regulator. Hence, it consented to recompense a huge fine of approximately $30 million.

Irrespective of the regulatory obstruction, the platform remains a well-known player within the crypto exchange industry of the United States. As per the statistics provided by CoinMarketCap, the crypto exchange possesses the position of the 2nd-biggest crypto exchange within the United States Coming only after Coinbase.

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