Newly released documents from the Department of Justice related to convicted sex offender and financier Jeffrey Epstein contain a trove of information revealing his early involvement and awareness of the cryptocurrency sector. The files, released in two batches, show Epstein was an active investor and correspondent with notable figures in the crypto space, with all documented interactions occurring after his 2008 conviction.
Epstein's direct investments in major crypto companies have been confirmed. Emails reveal he invested $3 million in Coinbase in December 2014, when the exchange was valued at approximately $400 million. The opportunity was introduced by Tether co-founder Brock Pierce and his venture firm, Blockchain Capital, though Blockchain Capital stated Epstein invested independently. Coinbase co-founder Fred Ehrsam was personally aware of the investment. By 2018, Epstein had sold about half of his stake back to Blockchain Capital. Today, Coinbase is a publicly traded company worth around $44 billion.
Epstein was also an investor in Bitcoin infrastructure firm Blockstream. Early Bitcoin developer and Blockstream co-founder Adam Back confirmed the investment, noting Epstein was described as a limited partner in Joi Ito's fund, which later took a minority stake in Blockstream. Back emphasized that Blockstream currently has "no direct nor indirect financial connection with Jeffrey Epstein, or his estate." Newly revealed files also show Back and his co-founder Austin Hill were invited to Epstein's island in 2014, though it's unclear if the trip occurred.
The files detail extensive correspondence between Epstein and Tether co-founder Brock Pierce, which included discussions on cryptocurrency and personal matters. Pierce told Epstein he "had a great time with the girls," and Epstein asked Pierce to "find him a present" while traveling. The documents also describe a meeting at Epstein's Manhattan townhouse between Pierce and former Harvard President Larry Summers, where they discussed Bitcoin. Summers expressed seeing "opportunities" but was concerned about potential reputational damage from losses.
Other major crypto figures appear in the files. In a 2014 email exchange, famed tech investor Peter Thiel questioned Epstein about growing "anti-BTC pressure" within the U.S. government. Epstein replied that "there is little agreement on what Bitcoin is," listing it as a store of value, currency, property, architecture, or payment system. At the time, Bitcoin was trading around $691.
Bitcoin bull and MicroStrategy Executive Chairman Michael Saylor was referenced in a 2010 email from Epstein's publicist, Peggy Siegal, who called him a "creep" and "sort of like a zombie on a drug." The email noted Saylor provided $25,000 for a spring gala for promotional opportunities. This was over a decade before MicroStrategy began its massive Bitcoin acquisitions.
Despite his own criminal record, Epstein expressed concerns about ethics in crypto funding in a 2018 email to Bitcoin researcher Jeremy Rubin, writing, "I am more than happy to fund things but as I am high-profile, it can't be questionable ethics." Rubin replied referencing a "grey area between pump and develop," to which Epstein remarked that some investors' deal "is to pump the currency. It is dangerous."
Ethereum co-founder Vitalik Buterin's name appears indirectly. An email to Epstein from Russian investor Masha Drokova highlighted a "super smart and young blockchain enthusiast in Russia" who "can be better than Vitalik Buterin if he focuses on technology." The identity of this individual remains unclear.
The revelations have sparked controversy within the crypto community. Following the file release, a Bitcoin core developer and former Blockstream contributor urged Adam Back to resign.
