Emails Uncover Jeffrey Epstein as Early Coinbase Investor
Recent emails released by the U.S. Justice Department reveal that Jeffrey Epstein made a significant investment in Coinbase in 2014. He invested $3 million in the cryptocurrency exchange during its Series C funding round.
Investment Details and Key Players
The deal involved Tether co-founder Brock Pierce, who facilitated the investment through his firm, Blockchain Capital. These emails indicate that Fred Ehrsam, co-founder of Coinbase, was aware of Epstein’s involvement.
- Investment Amount: $3 million
- Investment Date: December 2014
- Valuation at Investment: $400 million
- Current Valuation of Coinbase: Approximately $51 billion
Background on Jeffrey Epstein
Jeffrey Epstein’s investment came amid a troubled history. He was convicted in 2008 for procuring a minor for prostitution and was a registered sex offender afterward. Despite his past, he seemingly relied on advice from figures like Reid Hoffman, co-founder of LinkedIn, during his investment decision-making process.
Coinbase’s Internal Communications
The emails documented communications between Epstein’s executive assistant and Blockchain Capital regarding the investment arrangement. On December 3, 2014, Ehrsam expressed interest in meeting Epstein in New York to discuss the investment.
Later that day, Blockchain Capital co-founder Brad Stephens informed Ehrsam that they could proceed, and Coinbase’s wire transfer information was sent shortly after. However, Blockchain Capital stated that the investment was “never consummated,” despite evidence of a $3,001,000 transaction associated with Epstein’s involvement.
Additional Investments and Future Developments
In addition to Coinbase, Epstein also invested in another prominent cryptocurrency firm, Blockstream. By 2018, he sold half of his Coinbase equity back to Blockchain Capital for nearly $15 million.
Epstein’s involvement in Coinbase reflects both the rapidly evolving landscape of cryptocurrency investments and the troubling implications of his past. He was found dead in a Manhattan jail cell in 2019 while awaiting trial on sex trafficking charges, raising further questions surrounding his financial dealings.
