Epstein Invested $3 Million in Coinbase According to DOJ Files Released
The U.S. Department of Justice has published a massive collection of files related to Jeffrey Epstein, totaling around 3.5 million pages. This release includes emails, financial records, and other materials gathered from multiple investigations into the late financier and convicted sex offender. The documents provide new insights into Epstein's activities, including his ventures in the emerging Bitcoin and cryptocurrency space during the mid-2010s.
Among the details we have uncovered in the files, Epstein made a $3 million investment in the cryptocurrency exchange Coinbase in December 2014. The deal valued Coinbase at approximately $400 million at the time, a figure far below its current value of over $50 billion. Records show the investment was routed through an entity connected to Epstein, highlighting his interest in early-stage tech companies.
Investment Details and Key Figures Involved
Emails from the released files indicate that the opportunity came through Brock Pierce, a prominent figure in the crypto industry and co-founder of Tether, along with his firm Blockchain Capital. Correspondence reveals that Coinbase co-founder's Fred Ehrsam and Brian Armstrong were directly aware of Epstein's involvement in the funding. In one email dated December 3, 2014, Ehrsam suggested meeting Epstein in New York to discuss the arrangement, noting it would be nice if convenient.
Further emails include wire transfer instructions sent to Epstein's executive legal assistant, Darren Indyke, following confirmation from Blockchain Capital. An asset listing from the end of 2014 explicitly records a $3,250,001.93 purchase of Coinbase equity under an LLC tied to Epstein.
Epstein later sold half of his stake back to Blockchain Capital, reportedly for $11 million, according to the files. This transaction shows the potential returns from early crypto investments during a period of rapid growth in the sector. The investment took place more than six years after Epstein's 2008 conviction in Florida for procuring a child for prostitution and soliciting a prostitute, during which time he was a registered sex offender.
The DOJ files also shed light on Epstein's other engagements in the cryptocurrency ecosystem. He committed $500,000 to Blockstream, a company focused on Bitcoin infrastructure led by Adam Back, and at the time, Austin Hill. Additionally, Epstein provided $850,000 to the MIT Digital Currency Initiative, which supported development work on Bitcoin Core from 2015 to 2017.
Brock Pierce features prominently in the newly released DOJ documents. His role in facilitating the Coinbase deal connects to his broader activities in the crypto world, including the founding of Tether (USDT stablecoin). These ties illustrate the overlapping networks between Bitcoin, Epstein, influential people, investors, and traditional finance, in the industry's formative years.
Coinbase has since become a major player in institutional cryptocurrency services, custodying hundreds of billions in assets. The exchange serves as the primary custodian for nine of the eleven spot Bitcoin exchange-traded funds available in the U.S. market. This position has made it a cornerstone for regulated exposure to digital assets among traditional investors.
The emergence of these historical details from the DOJ release prompts renewed examination of funding sources in the early Bitcoin and crypto space. Institutions and funds utilizing Coinbase's services may take note of the documented connections. The files offer a glimpse into how influential figures connected with the growing crypto sector over a decade ago.
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