The Most Surprising Bitcoin and Crypto Stories in the Epstein Files

A search by means of the trove of recordsdata associated to convicted intercourse offender Jeffrey Epstein offers 1000’s of outcomes associated to crypto and Bitcoin, highlighted by Epstein’s early involvement and consciousness of notable crypto initiatives and protocols.

Over the course of the week, Decrypt has highlighted a few of the largest tales that emerged from the thousands and thousands of recordsdata launched final week by the Division of Justice, together with how Epstein invested in Coinbase and Bitcoin agency Blockstream, and had a very shut relationship with Tether co-founder Brock Pierce.

However there’s a lot extra within the recordsdata, together with references to main crypto gamers like Ethereum co-founder Vitalik Buterin and Technique co-founder and Govt Chairman Michael Saylor. Right here’s a take a look at probably the most shocking crypto mentions from each batches of the Epstein recordsdata launched by the Division of Justice.



Coinbase funding

Jeffrey Epstein was an early investor in publicly traded crypto alternate Coinbase, new emails present. 

The convicted intercourse offender invested $3 million in 2014 and was launched to the chance by Tether co-founder Brock Pierce and his funding agency, Blockchain Capital. Nonetheless, Blockchain advised Decrypt that Epstein finally invested independently, not by means of the agency.

Based mostly on the emails, it is obvious that Coinbase co-founder Fred Ehrsam was personally conscious of the funding, which got here years after Epstein’s conviction. The funding was made when Coinbase was valued round $400 million; the publicly traded firm is now value $44 billion. 

In 2018, Epstein offered round half of his funding again to Blockchain Capital, emails present.

Bitcoin, crypto taxes

Epstein was in search of clarification about Bitcoin regulation and taxes as early as 2018, emails from the primary trove of recordsdata launched by the Division of Justice revealed. 

In dialog with former Trump strategist Steve Bannon, Epstein steered that the Treasury Division ought to create a voluntary disclosure type for crypto features in an try to “fuck all of the unhealthy guys.”

Later that yr, Epstein famous that crypto needs to be considered equally to the web, and dealt with with “coordinated understandings” and worldwide agreements. 

Brock Pierce and Epstein

Tether co-founder Brock Pierce communicated with Epstein on a number of events about cryptocurrency and girls, with all correspondence going down after Epstein’s 2008 conviction, in response to the most recent batch of recordsdata launched by the Division of Justice. 

At one level, Pierce advised Epstein that “he had a good time with the women,” and Epstein additionally instructed the crypto entrepreneur to “discover him a gift” when he was touring overseas.  

Moreover, Epstein communicated to either side of an alleged relationship that Pierce had with a person that Epstein known as “his assistant.” The person allegedly declined a wedding proposal from Pierce.

Recordsdata additionally uncovered a gathering at Epstein’s Manhattan townhouse between Tether co-founder Brock Pierce and former Harvard President Larry Summers. 

The 2 apparently utilized the disgraced financier’s dwelling to speak about Bitcoin, with Summers noting that he noticed “alternatives,” however was involved in regards to the potential injury to his popularity that Bitcoin losses may create.

Blockstream funding

Epstein was an investor in Bitcoin infrastructure agency Blockstream, in response to newly revealed emails and a affirmation from early Bitcoin developer and Blockstream co-founder Adam Again. 

“Blockstream met with Jeffrey Epstein, who was described on the time as a restricted companion in [Joi] Ito’s fund,” wrote Again. “That fund later invested a minority stake in Blockstream.”

The longtime Bitcoiner and his Blockstream co-founder Austin Hill had been additionally each invited to Epstein’s island in 2014, in response to newly revealed recordsdata from the DOJ. However whether or not or not the journey ever occurred is unclear from the emails, and Again didn’t reply to Decrypt’s request for remark.

In his affirmation of Epstein’s funding, the Blockstream co-founder added that the agency “has no direct nor oblique monetary reference to Jeffrey Epstein, or his property” at current time. 

A Bitcoin core developer and former contributor to Blockstream urged Again to resign this week after the brand new recordsdata had been launched. 

Epstein and Thiel speak Bitcoin narrative

A 2014 e mail from Jeffrey Epstein to famed tech investor Peter Thiel questioned Bitcoin’s narrative. 

“There’s little settlement on what Bitcoin is,” wrote Epstein. “Retailer of or intrinsic worth, (if any) foreign money, property, structure, cost system. And so forth.” 

The reply adopted a query from Thiel about an growing “anti-BTC strain” that is likely to be rising inside the U.S. authorities. 

On the time, Bitcoin was buying and selling round $691 per coin. It’s since jumped dramatically, not too long ago buying and selling round $70,000 after peaking above $126,000 final October.

Michael Saylor slammed

Bitcoin bull and Technique Govt Chairman Michael Saylor was known as a “creep” by Epstein’s publicist Peggy Siegal in an e mail to the convicted intercourse offender in 2010. 

“He has no persona. Type of like a zombie on a drug,” wrote Siegal of Saylor. “I walked him round and he was so bizarre that even I ran away from him.” 

In accordance with the e-mail, Saylor supplied $25,000 for a spring gala for the “alternative to get his identify on [the] invite and meet a hip group.”

The e-mail was despatched greater than a decade earlier than Saylor’s software program agency would make its first BTC buy, with the agency amassing almost $50 billion value of the asset and provoking a wave of followers to undertake a crypto treasury mannequin.

Questionable ethics

Regardless of his 2008 conviction for procuring a baby for prostitution and soliciting a prostitute, a decade later, Epstein was involved in regards to the ethics of funding initiatives within the crypto area. 

“I’m very happy to fund issues however as I’m high-profile, it will probably’t be questionable ethics,” Epstein wrote in an e mail to Bitcoin researcher Jeremy Rubin, who replied telling the financier that there’s a “gray space between pump and develop.” 

“Their deal is to pump the foreign money,” stated Epstein of traders within the area. “It’s harmful.”

A “higher” Vitalik Buterin

Ethereum co-founder Vitalik Buterin’s identify is discovered within the Epstein recordsdata, however not because of any direct connections or correspondence with the disgraced financier. 

As an alternative, the most recent batch of emails exhibits an e mail Epstein acquired from Masha Drokova that highlights that the Russian investor had discovered a “tremendous good and younger blockchain fanatic in Russia.” 

“He may be higher than Vitalik Buterin if he focuses on expertise,” Drokova added. 

Though she provided to attach Epstein to the Russian particular person, it’s not clear who the technologist was, or whether or not or not they had been finally linked to Epstein.