Epstein-Linked Entity Acquired $3.25M Stake in 2014
U.S. Department of Justice emails show an entity connected to Jeffrey Epstein invested $3.25 million into Coinbase in 2014. The transaction, detailed in an email dated December 4, 2014, was for 195,910 Series C shares at a time when the cryptocurrency exchange was valued at $400 million. The investment was facilitated by Bradford Stephens, founder of Blockchain Capital, who communicated with one of Epstein's known associates, Darren Indyke. Stephens' email noted, "When we figure out which LLC will be making the $3m investment, we will have them change the name of the investing entity," indicating a deliberate move to use a corporate structure that shielded the final investor's identity. The documents do not suggest Coinbase executives were aware of Epstein's involvement.
Half of Stake Liquidated for $15M in 2018
Four years later, the investment yielded a significant return. According to a January 20, 2018 email, Stephens from Blockchain Capital offered to purchase the position on behalf of the firm. He proposed buying back the stake at a $2 billion valuation, a five-fold increase from the initial investment valuation. Stephens wrote, "We would pay $15m for this $3m investment." A subsequent email on February 22 from Blockchain Capital co-founder Brock Pierce confirmed the deal's completion, stating that Stephens had "wired $15m for half of your Coinbase position yesterday." This transaction allowed Epstein's entity to cash out $15 million while retaining the other half of the equity, which was also valued at $15 million at the time.
Documents Reveal Broader Crypto Investment Pattern
The Coinbase investment was not an isolated event. The released documents reveal a pattern of Epstein gaining exposure to the early crypto ecosystem through intermediaries and complex corporate structures. Epstein-linked entities, including Crypto Currency Partners II LLC, also participated in the $18-million seed round for blockchain technology firm Blockstream. These investments highlight a strategy of using LLCs to invest in foundational crypto companies, obscuring direct ties while capitalizing on the industry's early growth.
