Jesse Powell, the co-founder of cryptocurrency exchange Kraken, has launched a lawsuit against a San Francisco housing co-op, claiming that he was unfairly refused the opportunity to purchase a high-end property because of his role in the crypto industry. The case, filed on February 5 in San Francisco Superior Court, accuses the board of 2500 Steiner Street of delaying his purchase without offering a legal reason.
Powell claims that the board’s decision was influenced by a number of factors, including his previous legal troubles, political beliefs, and industry affiliation. The lawsuit claims that, despite his financial readiness to purchase the property, the board prohibited the deal from going to a shareholder vote, essentially ending his acquisition effort.
Powell resorted to social media to express his displeasure, writing, “I’m fed up with condescending, elitist bigots unlawfully discriminating against me.”
According to the legal brief, the co-op has a strong political alignment and serves as a hub for key San Francisco Democrats. While Powell is not technically aligned with any political party, he donated $1 million to Donald Trump’s presidential campaign in 2024, which he feels contributed to the board’s rejection of his bid.
A prominent individual listed in the case is venture capitalist Bruce Golden, who Powell claims actively opposed the sale. Golden, who is well-known for his large donations to Democratic organizations, allegedly led attempts to deny Powell’s application.
Powell also mentions a 2023 FBI search of his home as a possible explanation for the rejection. Despite the absence of charges in the investigation, Powell asserts that the incident sparked unfavorable views among the building’s decision-makers.
According to the lawsuit, Powell had already established an agreement with the unit’s seller, which required permission from nine of the eleven non-selling board members. However, he alleges the board purposefully hindered the process, initially refusing to provide a justification for the denial and later alleging financial problems, such as the lack of a signed tax return—which Powell claims was never required in the first place.
A similar apartment in the building is currently for sale for roughly $10 million, underscoring the property’s exclusivity. Powell claims that he presented the necessary financial paperwork, but the board voted against his purchase without explanation in late 2023.
Powell’s complaint seeks court intervention to finalize the acquisition deal, as well as damages and other relief. Neither the management business, Twenty-Five Hundred Steiner Street, Inc., nor Bruce Golden have officially addressed the charges.
This case highlights broader worries in the crypto community about financial exclusion, with Powell’s lawsuit reigniting debates about bias and potential impediments for industry leaders operating outside of traditional banking structures.
