Jeffrey Epstein’s Investment in Coinbase
In 2014, Jeffrey Epstein invested $3 million in the cryptocurrency exchange Coinbase, a fact that is drawing renewed scrutiny following the release of emails by the U.S. Justice Department. According to these emails, key players at Coinbase were aware of Epstein’s financial involvement, facilitated by Brock Pierce, a co-founder of Tether and Blockchain Capital.
Meetings and Communications
Fred Ehrsam, one of the founders of Coinbase, expressed personal interest in meeting with Epstein on December 3, 2014, to discuss the investment arrangement, a move highlighted in the correspondence.
“I have a gap between noon and 3pm today; it would be nice to meet him if convenient,”
Ehrsam said in his message. Later that same day, Blockchain Capital’s Brad Stephens confirmed that they were ready to proceed with Epstein’s investment, after which Coinbase’s bank details were dispatched to Epstein’s assistant.
Valuation and Context
At the time of Epstein’s investment, Coinbase was valued at approximately $400 million, a stark contrast to its current valuation of around $51 billion. It’s important to note that 2014 was also significant because it came more than six years after Epstein’s 2008 conviction for procuring a minor for prostitution, which registered him as a sex offender.
Influence and Advice
In the context of his investment strategy, Epstein leaned on the advice of influential figures, including LinkedIn founder Reid Hoffman. When Epstein sought Hoffman’s opinion on his negotiation tactics for the Coinbase investment, Hoffman suggested uncertainty about the company’s internal situation, advising,
“I probably wouldn’t play”
in that funding round.
Further Investments and Divestment
Furthermore, communications have emerged confirming that Epstein was also an early investor in another leading cryptocurrency firm, Blockstream. Adam Back, a co-founder of Blockstream, confirmed the interaction regarding Epstein’s investment on a social platform over the weekend.
By 2018, Epstein had divested half of his Coinbase stake back to Blockchain Capital, which reaped him nearly $15 million in cash from his original investment. His remaining equity would ultimately be left unclaimed after his death in 2019 while awaiting charges for sex trafficking.
Reactions
Neither Coinbase nor its leadership, including Ehrsam, have commented on these revelations as of yet. Representatives for Brock Pierce and Blockchain Capital also were unavailable for statements.
