Key Notes
- About ten years ago, Coinbase received $3 million as an investment from Jeffrey Epstein.
- The exchange is now dragged for this early capital benefit.
- Blockstream CEO Adam Back has denied any involvement in connection with Jeffrey Epstein.
American cryptocurrency exchange Coinbase had no idea that an investment from a decade ago would bring it so much negativity today. For context, the Brian Armstrong-led firm is being dragged online for receiving about $3 million from American financier and sex offender Jeffrey Epstein, more than ten years ago.
Top Crypto Industry Players Show Up in Epstein Files
The United States Department of Justice (DoJ) released documents suggesting that Epstein invested in Coinbase through Brock Pierceโs Blockchain Capital in 2014. This connection has raised questions among netizens, as some enthusiasts have gone in search of documents and other proofs that substantiate these claims.
The released documents included emails from July 2014 in which Austin Hill, Blockstream co-founder, discussed the companyโs seed funding round with Epstein and Joi Ito. On one hand, Bitcoin researcher Kyle Torpey wrote:
โUnclear if the deal actually went through, but there is a lot of discussion around investing in Coinbase in the files.โ
He was speaking of the Epstein Files, a massive collection of documents related to the case of the pedophile that has unveiled the involvement of top industry players.
Apparently, investing such a lump sum secured Epstein a face-to-face meeting with Fred Ehrsam, one of Coinbaseโs co-founders. According to a leaked email screenshot, โJeffโ is mentioned along with Ehrsam, indicating that the co-founder might have been aware of his involvement in Coinbase.
However, there are documents that shows Epstein sold about 50% of the stake back to Blockchain Capital for around $11 million.
Blockstreamโs Adam Back Denies Ties with Epstein
Blockstream CEO Adam Back was also implicated in this matter, stirring up market reaction and significant backlash.
However, Back distanced himself from the Epstein episode in a statement released recently. His post on X reads, โBlockstream has no direct nor indirect financial connection with Jeffrey Epstein, or his estate.โ
He further explained that Blockstream was only introduced to Ito at a 2014 investor roadshow. This eventually led to a meeting with Epstein, as a limited partner in Itoโs investment fund.
While it looks to find a way out of these allegations, Coinbase might focus on its prediction platform, which it launched a week ago. It collaborated with Kalshi to enable trading on real-world events, joining the most important trend in todayโs crypto world.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.
