Jesse Powell’s blunt takes on U.S. crypto rules earn No. 5 ‘spiciest’

On Dec. 13, 2019, Kraken CEO Jesse Powell was ranked No. 5 runner-up on a 2019 “Spiciest Person” list, reflecting a year of blunt public statements on U.S. regulation, exchange security, and major insolvency cases. As noted in a Kraken review, the exchange is based in San Francisco..

Powell described 2019 as a build-out period as the company scaled systems for future activity. “For Kraken, 2019 was a year of building, scaling systems, making preparations for the next wave. It was actually nice that the markets gave us a bit of a breather.”

He criticized what he called regulatory capture and rent-seeking linked to U.S. law enforcement demands on crypto firms, arguing the burden falls on smaller companies. “On the one hand, we are happy to assist to the extent legally possible in the capture and prosecution of violent criminals and thieves. On the other hand, nobody likes having a gun to their head, being forced to divert labor from one’s own objectives to somebody else’s.”

He urged customers to hold long-term funds in hardware wallets rather than on exchanges. “PLEASE do not store more coins on an exchange (including @krakenfx) than you need to actively trade. Use @LedgerHQ or @Trezor. DEXes are not a panacea — look at The DAO. Open source just means exploits will be discovered sooner (probably not by good guys).”

After the collapse of Canadian exchange QuadrigaCX, Powell noted Kraken had “thousands of wallet addresses known to belong to @QuadrigaCoinEx” and called the reported death of its founder and the lost keys “bizarre.” He invited law enforcement to make contact: “I’m not normally calling for subpoenas but if @rcmpgrcpolice are looking in to this, contact @krakenfx.”

On the Mt. Gox bankruptcy, he publicly challenged claims he argued could delay payouts to creditors. Addressing former Bitcoin Foundation chair Peter Vessenes, he wrote: “Unbelievable balls on [Vessenes] to hold up payouts to thousands of victims for years with an entirely frivolous claim over a botched partnership attempt. How could you think that your $16B claim should be senior to the actual account holders’? How do you show your face?” He warned the Mt. Gox trustee against large market sales of recovered bitcoin.

He disputed an article that questioned Kraken’s trading activity and cited “suspicious behavior,” calling the piece “ad hominem” and demanding corrections or removal. “If you don’t want to get hit back, don’t bully me.”

Powell emphasized that exchanges compete for customers despite having some influence. “Yes, exchanges have some power but they’re also in competition among each other. Same concept applies to grocery stores and shelf space. Ultimately, we’re all at the mercy of the consumer. There are thousands of tokens and we are always reevaluating our selection.”

For 2020, he outlined plans for client-facing upgrades, including new apps, more listed assets, additional funding options, and advanced order types and trading tools. He also referenced the upcoming Bitcoin halving.