The Federal Bureau of Investigation and the U.S. Department of Justice have closed their two-year investigation into Kraken co-founder Jesse Powell and returned the laptops and mobile phones agents seized during a 2023 search of his Los Angeles home, according to court filings cited by Fortune. The probe arose from allegations by Verge Center for the Arts, a Sacramento nonprofit Powell established in 2008, claiming he had hacked and cyber-stalked the organisation during a boardroom dispute. No criminal charges were filed, and a recent DOJ declination letter confirms the matter is closed. Powell, who remains in separate civil litigation against Verge board members, said the raid was "devastating both personally and professionally" and contends the returned devices corroborate his version of events. His attorney, Brandon Fox, said the letter should mitigate reputational damage to Powell and to Kraken, which is working toward a public listing. The FBI’s retreat comes as U.S. authorities continue broader enforcement actions against the cryptocurrency sector, leaving Powell’s case an outlier that ended without prosecution.