🌎 Kraken Co-Founder Sues San Francisco Co-op

Jesse Powell, the co-founder of leading cryptocurrency exchange Kraken, has filed a lawsuit against a San Francisco co-op, alleging that the co-op discriminated against him due to his ties to cryptocurrency and conservative leanings.

Allegations of Discrimination

Powell’s lawsuit, filed on February 5, claims that Twenty-Five Hundred Steiner Street Inc. violated California’s Fair Employment Housing Act and the California’s Unruh Act by denying his bid to purchase an apartment unit. According to the lawsuit, the co-op “never gave Mr. Powell a straight answer for its denial, instead offering only obfuscation and shifting pretexts for hindering, then ultimately denying the sale.”

Powell’s Statement

Frankly, I’m fed up with condescending, elitist bigots unlawfully discriminating against me.

Powell also shared his frustration on social media, stating that he had tried to avoid filing a lawsuit but decided to proceed with it. The lawsuit alleges that the co-op members blocked his purchase due to his involvement in the crypto industry and his conservative leanings. Additionally, the lawsuit claims that the FBI probe on his home in 2023 also contributed to his sale being denied.

Motivations Behind the Denial

According to the lawsuit, traditional power brokers view cryptocurrency as a threat to their monetary policy and fear how it can empower ordinary individuals. The lawsuit also highlights the co-op’s alleged bias against Powell’s conservative leanings, citing his donation to Donald Trump’s presidential campaign.

Key Parties Involved

The lawsuit specifically mentions Bruce Golden, a partner at venture capital firm Accel, who allegedly made it his personal mission to deny the sale. Powell’s lawsuit also notes that the apartment building is known as a “bastion of San Francisco power Democrats” due to many of its residents being Democrats.

The Purchase and Denial

Powell initially made a bid for the San Francisco unit in September 2024, receiving approval from nine out of the 11 co-op non-selling members and the board. However, in October 2024, Powell’s purchase was blocked by the board, citing financial concerns and his failure to provide a signed tax return.