Key Highlights
- Jeffrey Epstein invested $3 million in Coinbase in 2014 after working with Brock Pierce and Blockchain Capital.
- Epstein sold half of his Coinbase stake in 2018, receiving nearly $15 million, while keeping the other half.
- Epstein had meetings with top crypto and tech figures, including Michael J. Saylor and Reid Hoffman.
Newly released emails from the U.S. Department of Justice (DOJ) revealed that Jeffrey Epstein made a $3 million investment in the cryptocurrency exchange Coinbase in December 2014. For the unversed, Epstein, an influential American financier, later became widely known for serious crimes, including sex trafficking of minors. He also had strong ties with people in politics and the technology sector.
The recently released emails reveal that the investment was arranged through Brock Pierce, co-founder of Tether and Blockchain Capital, and that Coinbase co-founder Fred Ehrsam was aware of the arrangement.
In one message dated December 3, 2014, Ehrsam wrote, “I have a gap between noon and 3pm today, but again, not crucial for me, but would be nice to meet him if convenient. Is it important for him?”
Epstein’s Coinbase investment and cash-out
According to the documents, the investment took place in 2014 when Coinbase was valued at $400 million. Today, the exchange is worth about $51 billion.
In 2018, Epstein sold half of his Coinbase equity back to Blockchain Capital, receiving nearly $15 million, while retaining the other half of his stake. Brock Pierce confirmed the transaction in emails and at one point questioned whether the deal was fully completed, suggesting some confusion over the arrangement.
Epstein also had connections with other cryptocurrency ventures. The emails show he invested in Blockstream, a company co-founded by early Bitcoin developer Adam Back. He also met with prominent figures in tech and finance, including former U.S. Treasury Secretary Larry Summers, at his Manhattan townhouse to discuss Bitcoin.
Pierce described the Coinbase fundraising round as “the most platinum-plated deal in the space.”
Epstein also asked LinkedIn founder Reid Hoffman for advice on how much he should invest. Hoffman replied, “I probably wouldn’t play. But I may not be up-to-date on interesting internal news.”
Tax concerns and other connections
Epstein-related filings show he was concerned about cryptocurrency taxation in the United States. In a February 2018 email, he asked former White House advisor Steve Bannon for guidance on how the Treasury Department would respond to crypto-related questions.
Epstein’s involvement in cryptocurrency came after he was convicted in 2008 for procuring a child for prostitution and soliciting a prostitute, making him a registered sex offender at the time of the Coinbase investment. The newly unsealed records highlight his connections to wealthy investors and the early cryptocurrency world, without alleging any criminal wrongdoing in these deals.
Other high-profile figures appear in the email records, including Michael J. Saylor, Executive Chairman of Strategy, who was mentioned in a 2010 email from Hollywood publicist Peggy Siegal. The email described Saylor attending a charity event after giving a $25,000 donation. The records have caused discussions online about Epstein’s influence in the crypto space.
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