Files suggest that Jeffrey Epstein is a ‘principal’ reason for Bitcoin’s success

The release of millions of files related to Jeffrey Epstein has revealed his deep and surprising financial connections to the cryptocurrency industry. Records indicate that he bankrolled Bitcoin during its earliest days. When you consider that many crypto companies have grown into multibillion-dollar behemoths, it seems like Epstein wasn’t just a casual spectator: he was actively funding crucial development nodes.

According to the Guardian, documents released by the US Department of Justice show that Epstein’s involvement with Bitcoin’s development stemmed directly from his role as a donor to the Massachusetts Institute of Technology, or MIT. Over two decades, MIT accepted more than $800,000 from Epstein. Epstein had built a massive network through shared interests and investments and was able to facilitate over $7 million more in donations from contacts.

In 2015, communications between Joichi Ito, then the director of MIT’s tech-focused Media Lab, and Epstein confirm the depth of the funding. Ito wrote that Epstein’s “gift funds” were used to “underwrite” the launch of the Digital Currency Initiative. This initiative was tasked with researching and developing open-source crypto technologies and to serve as the “principal home and funding source” for Bitcoin. 

So, Bitcoin owes Epstein for its start

Epstein didn’t stop there. He also made corporate investments in key startups in 2014, six years after his conviction. Epstein made a $500,000 early-stage investment in Blockstream, a prominent firm focused on building out Bitcoin technology solutions,  through a fund he co-owned with MIT’s Joichi Ito.

Email communications reveal that Epstein connected with Blockstream co-founders, Adam Back and Austin Hill. Back later claimed on social media that Blockstream viewed Epstein as a “limited partner in Ito’s fund,” and that they eventually divested due to a potential conflict of interest, ensuring the company has “no direct nor indirect financial connection with Jeffrey Epstein, or his estate.”

Epstein’s largest investment- $3 million- was in Coinbase, the largest cryptocurrency exchange in the US. This investment was brokered by Brock Pierce, a co-founder of Tether and a crypto evangelist. Epstein eventually sold half his stocks to Pierce for a cool $15 million in 2018. It gives you an idea of just how much Epstein was worth at the time of his death. Coinbase is now a multibillion-dollar giant that went public on the Nasdaq in 2021.

Despite the impact of these investments, the general industry reaction is muted and dismissive. Charlotte Fang, the founder of Remilia, suggested that “only unserious people might care” about the investment in Coinbase. In contrast, Luke Dashjr, an early contributor to Bitcoin’s development, has publicly called for Adam Back to resign from his CEO role at Blockstream over these ties. 

As for why Epstein was so interested in this niche technology, experts have some ideas. Kadan Stadelmann of Komodo, a crypto platform, surmised that Epstein “might have liked Coinbase’s IPO prospects.” Another expert posits that technological capabilities and “seeing markets without any ethical commitments” appealed to him.