Kraken, one of the leading cryptocurrency exchanges, has publicly distanced itself from its co-founder and former CEO, Jesse Powell.
Recent reports revealed that Powell is currently the subject of a high-stakes federal investigation, and his Los Angeles residence was raided by the Federal Bureau of Investigation (FBI).
The investigation arises from allegations made against Powell by the Verge Center for the Arts, an organization he co-founded back in 2007. While the details of the investigation remain undisclosed, Kraken has made it clear that they are not involved in any way.
A statement from the crypto exchange said:
“Kraken has been made aware that former CEO Jesse Powell is involved in a civil dispute with a nonprofit art gallery, the Verge Center for the Arts. We understand there is a federal investigation open and search warrants were executed to gather more information about the Verge matter. The US Attorney has advised us that Kraken is not a part of the investigation in any way.”
By distancing itself from the investigation, the exchange aims to protect its reputation and reassure its users that their funds and transactions are not affected.
It is worth noting that in February, the U.S. Securities and Exchange Commission (SEC) took enforcement action against Kraken for its failure to register the offer and sale of its staking service program. The exchange settled with the financial regulator by paying $30 million in fines. Despite this previous incident, Kraken continues to operate and has made efforts to meet regulatory requirements.
