Jesse Powell, co-founder of the cryptocurrency exchange Kraken, has filed a lawsuit against a luxury co-op at 2500 Steiner Street in San Francisco, alleging discrimination that prevented him from purchasing a home there. The suit, filed on February 5 in San Francisco’s Superior Court, claims the co-op board unjustly blocked Powell’s acquisition of a unit within the building.
Powell’s legal team contends that the co-op board discriminated against him based on several factors, including a prior FBI search of his house, his support for conservative causes, and his affiliations with the cryptocurrency industry. The complaint suggests that the co-op members harbor negative sentiments towards the crypto sector, which influenced their decision.
The lawsuit emerges in a climate where numerous U.S. crypto executives have reported difficulties accessing financial and banking services during the Biden administration, referencing "pause letters" from the Federal Deposit Insurance Corporation to banks regarding their crypto activities. Powell expressed his frustration with what he perceives as elitist discrimination in a post on February 5.
Powell has highlighted the political leanings of 2500 Steiner Street, describing it as a stronghold for influential San Francisco Democrats. He has pointed out his own political contributions, including a $1 million donation to Donald Trump’s campaign, despite not being affiliated with any political party. The lawsuit specifically names Bruce Golden, a partner at the venture capital firm Accel, accusing him of blocking the sale due to Golden’s significant contributions to Democratic organizations.
The purchase agreement for a unit in the 12-unit building was initially made in September, contingent on the approval of the majority of non-selling co-op members and the board. Powell alleges that the board actively worked against the sale reaching a shareholder vote and that his bid was ultimately rejected without a clear reason, although he was later informed that financial concerns were the cause. He claims that the requirement of a signed tax return was not previously stipulated by the board.
Powell is seeking legal intervention to enforce the completion of the purchase agreement for the unit, in addition to various damages, interest, and relief. The current market listing for a 3,500 sq ft, 4-bedroom, 5-bathroom unit in the building is just under $10 million. Neither the co-op company, Twenty-Five Hundred Steiner Street, Inc., nor Bruce Golden have commented on the lawsuit.
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