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Ruholamin Haqshanas
Ruholamin Haqshanas
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Kraken co-founder Jesse Powell has filed a lawsuit against a San Francisco luxury co-op, alleging that its board unlawfully blocked his attempt to purchase a home due to his ties to the crypto industry and political beliefs.
Powell’s legal team filed the suit on Feb. 5 in San Francisco’s Superior Court, accusing the board of 2500 Steiner Street of discrimination when it denied his bid to purchase a unit in the high-end 12-unit building.
The lawsuit claims the board failed to provide a clear reason for the rejection and suggests Powell’s involvement in cryptocurrency, support for conservative causes, and a past FBI search of his home may have contributed to the decision.
Jesse Powell Claims Crypto Bias and Politics Affected the Decision
According to the lawsuit, Powell believes the co-op members looked down on the crypto industry and that his political leanings further alienated him from the building’s board.
The filing also points to a broader trend, where U.S. crypto executives have faced increasing hurdles under the Biden administration, particularly regarding access to banking and financial services.
The complaint references pause letters sent by the Federal Deposit Insurance Corporation (FDIC) to banks concerning their dealings with crypto businesses.
Expressing his frustration, Powell posted on X (formerly Twitter), saying, “Frankly, I’m fed up with condescending, elitist bigots unlawfully discriminating against me.”
Powell, who is not affiliated with any political party, previously made headlines in June when he donated $1 million to support Donald Trump’s presidential campaign.
The lawsuit highlights the building’s reputation as a stronghold for San Francisco Democrats, claiming it was a key factor in Powell’s rejection.
The lawsuit specifically calls out Bruce Golden, a partner at venture capital firm Accel, alleging that he played a central role in blocking the sale. Powell contends that Golden, a major donor to Democratic organizations, “made it his personal mission to deny the sale.”
Powell Alleges The Approval Process Was Disrupted
Powell initially agreed to purchase the unit in September, contingent on approval from nine of the 11 non-selling co-op members and the board.
However, he claims the board deliberately stalled the process to ensure the sale never reached a vote.
By October, Powell’s bid had been officially denied. The board cited financial concerns and claimed he failed to provide a signed tax return.
Powell argues that no such requirement was ever mentioned, and the board never formally requested the document.
He later provided additional financial records, yet the board and non-selling members ultimately rejected his bid without explanation in late November.
Powell’s lawsuit asks the court to compel the completion of the sale and award him damages, interest, and additional relief.
Last month, the Securities and Exchange Commission (SEC) achieved a partial victory in its legal battle against Kraken as a federal judge in California dismissed one of the crypto exchange’s central defenses.
At the time, Judge William Orrick ruled against Kraken’s use of the “major questions doctrine,” which claims 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.
