Jeffrey Epstein’s $3M Coinbase Investment Revealed in DOJ Documents: Crypto Ties Exposed
Recent disclosures from the U.S. Department of Justice (DOJ) Epstein Files have uncovered significant links between the late convicted financier Jeffrey Epstein and early cryptocurrency ventures. These documents, part of ongoing releases, detail Epstein’s involvement in funding key players in the crypto space during its nascent phase.
Epstein’s Direct Investment in Coinbase
In December 2014, Epstein invested $3 million in Coinbase during its Series C funding round, when the exchange was valued at around $400 million. The deal was arranged through Brock Pierce, co-founder of Tether and Blockchain Capital, a prominent crypto venture firm. Emails show that Epstein used his entity, IGO Company LLC, to make the purchase directly after initial discussions for a fund investment fell through.
This early stake highlighted Epstein’s interest in digital assets, as he received regular investor updates from Blockchain Capital. A 2014 asset list from the DOJ files explicitly records the $3,001,000 Coinbase purchase.
Interactions with Coinbase Leadership
Leaked correspondence reveals that Fred Ehrsam, Coinbase co-founder, was aware of Epstein’s participation. In one email, Ehrsam discussed scheduling a meeting with “Jeff,” expressing flexibility while noting it would be “nice” if convenient. This suggests Ehrsam knew about the investor’s identity and was open to direct engagement.
By 2018, further emails indicate Epstein had secured his allocation. Reports suggest he later sold half of his stake back to Blockchain Capital for approximately $15 million, reflecting substantial returns as Coinbase’s value grew dramatically (leading to its 2021 Nasdaq listing at an $86 billion valuation).
Blockstream Connections and Adam Back’s Response
The documents also link Epstein to Blockstream, a Bitcoin infrastructure company. In 2014, during Blockstream’s $18 million oversubscribed seed round, Epstein’s allocation was increased from $50,000 to $500,000 through a fund managed by Joi Ito, former director of the MIT Media Lab. Emails from co-founder Austin Hill show discussions involving Epstein, Ito, and others like Reid Hoffman.
Adam Back, Blockstream CEO and Bitcoin pioneer, addressed these revelations on X (formerly Twitter). He clarified that Epstein was introduced as a limited partner in Ito’s fund, which briefly held a minority stake in Blockstream. The fund divested its shares months later due to potential conflicts of interest and other concerns. Back emphasized: “Blockstream has no direct nor indirect financial connection with Jeffrey Epstein, or his estate.”
Broader Context and Industry Implications
These revelations spotlight due diligence practices in the early crypto industry, where high-profile investors sometimes entered through intermediaries. While the investments were relatively small in scale, they raise questions about oversight in venture funding.
Note: The presence of names in the Epstein Files does not imply wrongdoing. The documents stem from legal proceedings related to Epstein’s estate and associates.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.