Kraken Co-Founder Jesse Powell Files Lawsuit Against Upscale Co-Op for Preventing Home Purchase Due to Cryptocurrency Connections

Jesse Powell, co-founder of Kraken, has initiated legal action against a luxury co-op in San Francisco, claiming that its board unlawfully obstructed his attempt to purchase a residence due to his connections to the cryptocurrency sector and his political beliefs.

Powell’s legal team submitted the lawsuit on February 5 in the Superior Court of San Francisco, alleging that the board of 2500 Steiner Avenue engaged in discriminatory practices by rejecting his offer to acquire a unit in the upscale 12-unit building.

The lawsuit asserts that the board did not provide a clear rationale for the denial and implies that Powell’s involvement in cryptocurrency, support for conservative initiatives, and a prior FBI search of his home may have influenced their decision.

Jesse Powell Claims Crypto Bias and Politics Affected the Decision

The lawsuit indicates that Powell feels the co-op members held a negative view of the cryptocurrency industry and that his political affiliations further distanced him from the board.

The filing also highlights a broader trend, where U.S. cryptocurrency executives have encountered increasing obstacles under the Biden administration, particularly concerning access to banking and financial services.

The complaint mentions pause letters issued by the Federal Deposit Insurance Corporation (FDIC) to banks regarding their interactions with cryptocurrency firms.

Expressing his discontent, Powell shared on X (formerly Twitter), stating, “Frankly, I’m fed up with condescending, elitist bigots unlawfully discriminating against me.”

1/2 I tried everything to avoid filing this lawsuit. Frankly, I’m fed up with condescending, elitist bigots unlawfully discriminating against me. This time it’s housing in San Francisco. I had hoped to return to participate in the revitalization of the city. https://t.co/mRi4TpVo1X pic.twitter.com/1CbjlmLvx2

— Jesse Powell (@jespow) February 5, 2025

Powell, who is not affiliated with any political party, previously made headlines in June when he contributed $1 million to support Donald Trump’s presidential campaign.

The lawsuit emphasizes the building’s reputation as a bastion for San Francisco Democrats, asserting that this was a significant factor in Powell’s rejection.

The lawsuit specifically names Bruce Golden, a partner at the venture capital firm Accel, alleging that he played a pivotal role in obstructing the sale. Powell claims that Golden, a prominent donor to Democratic causes, “made it his personal mission to deny the sale.”

Powell Alleges The Approval Process Was Disrupted

Powell initially consented to purchase the unit in September, contingent upon approval from 9 of the 11 non-selling co-op members and the board.

However, he asserts that the board deliberately delayed the process to prevent the sale from ever being put to a vote.

By October, Powell’s offer had been officially rejected. The board cited financial concerns and claimed he did not provide a signed tax return.

Powell contends that no such requirement was ever communicated, and the board never formally requested the document.

He later provided additional financial information, but the board and non-selling members ultimately dismissed his offer without explanation in late November.

Powell’s lawsuit seeks to compel the completion of the sale and requests damages, interest, and other relief.

Last month, the Securities and Exchange Commission (SEC) achieved a partial victory in its legal dispute with Kraken, as a federal judge in California dismissed one of the cryptocurrency exchange’s key defenses.

At that time, Judge William Orrick ruled against Kraken’s invocation of the “major questions doctrine,” which asserts that federal agencies cannot exercise powers not explicitly granted by Congress.

The SEC had filed a motion to strike three of Kraken’s defenses in a lawsuit accusing the exchange of offering unregistered securities.

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