Newly released US Department of Justice emails indicate Jeffrey Epstein gained exposure to early cryptocurrency venture investments through intermediaries, including a reported stake in Coinbase.
DOJ files show an entity linked to Epstein purchased 195,910 Series C shares in Coinbase in 2014 for about $3.25 million, when the exchange was valued at roughly $400 million. The documents do not show Coinbase executives directly dealing with Epstein or being aware of the investment’s ultimate beneficial owner.
In a Dec. 4, 2014 email, Blockchain Capital founder Bradford Stephens wrote to Darren Indyke, an associate of Epstein: “When we figure out which LLC will be making the $3m investment, we will have them change the name of the investing entity. Wire instructions are also included.” The DOJ releases include related correspondence between Epstein, his accountant Richard Khan, and Blockchain Capital figures.
Epstein-linked entities also participated in Blockstream’s oversubscribed $18 million seed round. That participation was routed through three separate limited liability companies: Crypto Currency Partners II LLC, Crypto Currency Partners II LLP, and Crypto Currency Partners LP.
Four years after the Coinbase purchase, Stephens approached Epstein in 2018 seeking to buy half of the position. Stephens offered to purchase 50% of the stake at a $2 billion valuation, proposing to pay $15 million for roughly half of the original $3.25 million position. Stephens wrote on Jan. 20, 2018 that they “would be willing to buy the position from you at a $2b valuation. We would pay $15m for this $3m investment.”
A Feb. 22, 2018 email from Brock Pierce, a Blockchain Capital co-founder who helped facilitate Epstein’s investment, stated Stephens had “wired $15m for half of your Coinbase position yesterday,” leaving Epstein with remaining equity plus cash returned. DOJ documents include multiple references to Pierce in connection with cryptocurrency investments tied to Epstein-linked entities.
Cointelegraph has approached Coinbase for comment on the potential Epstein-linked investment.
Cointelegraph is committed to independent, transparent journalism. This article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently. Read our Editorial Policy https://cointelegraph.com/editorial-policy
