Epstein Put $3.25M Into Coinbase in 2014, Sold Half Stake for $15M in 2018
What Do the Newly Released Emails Reveal?
Newly released emails from the US Department of Justice indicate that Jeffrey Epstein, the late financier and convicted sex offender, gained indirect exposure to early cryptocurrency venture investments through intermediaries, including a reported stake in Coinbase.
According to the documents, an entity linked to Epstein acquired 195,910 Series C shares in Coinbase in 2014 for a total of $3.25 million, at a time when the crypto exchange was valued at roughly $400 million. The investment was structured through limited liability entities, obscuring the ultimate beneficial owner.
The files do not suggest that Coinbase executives had direct contact with Epstein or knowledge of his involvement at the time of the investment. The correspondence instead points to intermediaries handling both the structure and execution of the deal.
Investor Takeaway
How Was the Coinbase Investment Structured?
The emails show that the Coinbase investment was routed through entities connected to Epstein rather than made in his personal name. In a December 2014 email, Blockchain Capital founder and managing partner Bradford Stephens discussed renaming the investing entity once the final structure was determined.
“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,” Stephens wrote in an email dated Dec. 4, 2014, addressed to Darren Indyke, one of Epstein’s associates.
The correspondence highlights how early crypto venture rounds often relied on intermediaries and special-purpose vehicles, particularly when investors sought discretion or distance from the underlying transaction.
What Other Crypto Investments Were Linked to Epstein?
The DOJ releases suggest that the Coinbase stake was not an isolated case. Epstein-linked entities also took part in the $18 million oversubscribed seed round for Blockstream, a blockchain infrastructure company. That investment was made through three separate entities: Crypto Currency Partners II LLC, Crypto Currency Partners II LLP, and Crypto Currency Partners LP.
The documents indicate that Epstein maintained ongoing communication with advisers and crypto-focused investors as the sector developed, reflecting a broader pattern of exposure to early-stage crypto firms rather than a single opportunistic bet.
Several of the emails reference discussions involving figures active in the crypto venture space at the time, reinforcing the role of intermediaries in connecting Epstein-linked capital with early blockchain companies.
Investor Takeaway
How Was the Coinbase Stake Partially Sold?
Four years after the initial investment, emails show that Epstein was approached in 2018 about selling part of his Coinbase position. Stephens proposed purchasing half of the stake based on a $2 billion valuation, offering $15 million for roughly half of the shares originally acquired for about $3 million.
“We are interested in buying the LLC below that we used to make this Coinbase investment,” Stephens wrote in a Jan. 20, 2018 email. “We did this investment at a $400m valuation. The company just raised money at a $1.6b valuation, and we would be willing to buy the position from you at a $2b valuation. We would pay $15m for this $3m investment.”
A follow-up email dated Feb. 22 suggests the transaction was completed. In that message, Brock Pierce, a co-founder of Blockchain Capital, wrote that $15 million had been wired for half of the Coinbase position, leaving the remaining equity with Epstein-linked entities.
What Are the Broader Implications?
The DOJ disclosures add to a growing record of Epstein’s financial dealings beyond traditional markets, showing how his capital intersected with the early crypto venture ecosystem. While the documents do not allege wrongdoing by the companies involved, they illustrate how limited transparency was common in early crypto funding rounds.
Coinbase has been contacted for comment regarding the reported investment. The exchange has not publicly indicated that it was aware of Epstein’s connection to the stake at the time.
