Kraken Co-Founder Jesse Powell Sues Over Alleged Housing Discrimination Tied to Crypto Ties

Jesse Powell, the co-founder of crypto exchange Kraken, has filed a lawsuit against a high-end San Francisco apartment building, alleging that its co-op board blocked his purchase of a unit due to his involvement in the cryptocurrency industry. The suit, filed on February 5 in San Francisco's Superior Court, claims that Powell faced discrimination because of his ties to crypto, his political views, and his prior legal issues.

In the lawsuit, Powell’s attorneys accuse the board of 2500 Steiner Street of discriminating against him when they denied his offer to purchase a unit in the building, citing the board's failure to provide a clear reason for the rejection. According to Powell, the denial was partly due to his involvement with cryptocurrency, which the suit suggests was viewed negatively by the co-op members. Additionally, Powell's support for conservative causes and a 2023 FBI search of his home were allegedly factors in the board's decision.

The lawsuit highlights ongoing challenges faced by crypto executives in the United States, particularly under the Biden administration. It references the actions of the Federal Deposit Insurance Corporation (FDIC), which reportedly sent “pause letters” to banks involved with crypto-related activities, further complicating financial access for those in the industry.

Powell expressed frustration over what he described as "condescending, elitist bigots" who were unlawfully discriminating against him. He shared his feelings on social media, stating, “Frankly, I’m fed up with condescending, elitist bigots unlawfully discriminating against me.”

The building in question, 2500 Steiner Street, is known for its connections to San Francisco's political elite, with Powell claiming that it has a reputation as a “bastion of San Francisco power Democrats.” While Powell is not affiliated with any political party, his $1 million donation to support Republican candidate Donald Trump’s presidential campaign in 2020 is mentioned in the suit as part of the broader context of his political leanings. The suit also specifically targets Bruce Golden, a partner at venture capital firm Accel, who Powell claims played a key role in blocking the sale. Golden is described as a significant donor to Democratic causes and a vocal opponent of the transaction.

The legal battle stems from Powell’s agreement with the sellers of a unit in the 12-unit building, which was reached in September 2023, contingent on the approval of nine out of 11 non-selling co-op members. Powell claims that the board worked to ensure the sale would never reach a shareholder vote, and despite submitting additional financial information after an initial delay, he alleges the board unanimously rejected the sale by the end of November without providing any clear explanation.

Powell is now asking the court to compel the completion of the sale and to award him various damages, interest, and relief related to the alleged discrimination.

At the time of writing, representatives for 2500 Steiner Street and Bruce Golden have not commented on the lawsuit.