Kraken co-founder Jesse Powell is accusing a San Francisco co-op of denying his unit purchase on the grounds of discrimination for his ties to cryptocurrency and political leanings.
According to a lawsuit filed by Powell’s legal team on Feb. 5, Powell alleged the San Francisco co-op, Twenty-Five Hundred Steiner Street Inc., violated the California’s Fair Employment Housing Act and the California’s Unruh Act by discriminating against him when it denied his bid to purchase an apartment unit.
The Kraken exec shared details regarding the lawsuit on his X account on Feb. 6, claiming he had tried to avoid filing a lawsuit but decided to proceed with it.
“Frankly, I’m fed up with condescending, elitist bigots unlawfully discriminating against me,” said Powell in his post.
The lawsuit claims 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 alleged the co-op members blocked his purchase due to his involvement in the crypto industry and his conservative leanings. The lawsuit also alleged that the FBI probe on his home back in 2023 also contributed to his sale being denied.
“Traditional political power brokers view cryptocurrency as a threat to their monetary policy, fear how it can empower ordinary individuals, and look down on cryptocurrency as a speculative and volatile asset,” wrote Powell’s legal team in the filing.
Powell is a renowned figure in the crypto sphere for his role in co-founding the crypto exchange Kraken. Kraken recently relaunched its platform in the United States after the SEC ordered its closure in 2023.
Although Powell is not affiliated with any political party, in June 2024 he donated a sum of $1 million to Donald Trump’s presidential campaign. On the other hand, the lawsuit claims that the apartment building Powell wanted to purchase is known as a “a bastion of San Francisco power Democrats” due to many of its residents being Democrats.
The lawsuit specifically spotlights Bruce Golden, a partner at venture capital firm Accel. Powell alleges that Golden, who the lawsuit claims is a major donor to Democratic organizations, “made it his personal mission to deny the sale.”
The Kraken co-founder initially made a bid for the San Francisco unit back 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.
Powell argued that a signed tax return was never mentioned previously as a requirement and that the board never formally requested it. He ended up submitting the required documents, but the sale had already been rejected by the board and non-selling members in late November.
Powell’s lawsuit ultimately asks the court to let him complete the apartment unit sale and award him damages, interest, and additional relief.
