Kraken’s Powell claims in lawsuit he was denied housing due to crypto ties

Crypto exchange Kraken co-founder Jesse Powell has sued a high-priced apartment building’s co-op, claiming its members blocked him from buying a home partly due to his crypto industry ties.

Powell’s lawyers alleged in a Feb. 5 suit in San Francisco’s Superior Court that the board of 2500 Steiner Street “discriminated against Mr. Powell in denying him housing” when it blocked his purchase of a unit and didn’t give “a straight answer for its denial.”

The complaint alleged Powell faced discrimination due to his house being searched by the FBI in early 2023, his support of “nationally popular conservative causes,” and “his connections to cryptocurrency” — an industry Powell claimed was “looked down on” by co-op members.

The lawsuit comes amid the backdrop of many US crypto executives claiming they were largely cut off from finance and banking services under the Biden administration. It pointed to so-called “pause letters” the Federal Deposit Insurance Corporation sent to banks over their crypto-related activities.

“Frankly, I’m fed up with condescending, elitist bigots unlawfully discriminating against me,” Powell posted to X on Feb. 5.

Powell claimed in his suit that 2500 Steiner Street is “well known in political circles as ‘a bastion of San Francisco power Democrats.’” He isn’t registered with any political party, but in June, Powell donated $1 million to help Republican Donald Trump’s eventually successful presidential bid.

His suit targets, in particular, venture capital firm Accel partner Bruce Golden, whom he claimed “has donated millions of dollars over the years to Democratic organizations” and “made it his personal mission to deny the sale.”

The company for the building’s co-op, Twenty-Five Hundred Steiner Street, Inc., and Bruce Golden could not be reached for comment.

The suit said Powell and the sellers of a unit in the 12-unit building inked a deal in September, subject to the approval of nine out of 11 non-selling co-op members and the building’s board.

“Here, however, the Board worked tirelessly to make sure the sale would never make it to a shareholder vote,” Powell said. He said the sale was later denied by the co-op and alleged that “Mr. Golden spearheaded the denial.”

Powell claimed the board denied his bid to approve the sale without reason in October. He said he was later told “the denial was a matter of finances” and that it was rejected as he didn’t provide a signed tax return. Powell said that “was never a requirement and the Board had not asked for one.”

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Powell said he handed over more financial information. His suit alleged the board and non-selling building shareholders unanimously voted against the sale in late November, and he was given “no explanation at all.”

Powell asked the court to compel the completion of the purchase agreement for the unit along with awarding him various damages, interest and relief.

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