Recently released DOJ documents connect Jeffrey Epstein to a 2014 investment in Coinbase.

Emails reveal that Brock Pierce facilitated Jeffrey Epstein’s introduction to the Coinbase funding round, though Blockchain Capital later stated that its fund investment was not finalized as Epstein invested on his own.

Jeffrey Epstein charges being unveiled in 2019. (Stephanie Keith/Getty Images)

What to know:

• Recently disclosed Justice Department files indicate that Jeffrey Epstein, through a U.S. Virgin Islands LLC, invested roughly $3 million in Coinbase’s Series C round in 2014 after being introduced to the opportunity by crypto entrepreneur Brock Pierce.
• Emails suggest that Coinbase co-founder Fred Ehrsam discussed a potential meeting with Epstein concerning the investment, while Reid Hoffman, co-founder of LinkedIn, cautioned Epstein against participating, stating he “probably wouldn’t play.”
• Blockchain Capital asserts that its fund ultimately did not invest alongside Epstein and later negotiated in 2018 to acquire half of his Coinbase stake for around $14.7 million, suggesting an $11 million profit on the portion sold.

Recently unsealed Justice Department documents reveal that Coinbase co-founder Fred Ehrsam was involved in email communications regarding a $3 million investment from Jeffrey Epstein in 2014, following Epstein’s initial conviction.

Although Epstein’s stake was under 1% and he did not hold a governance role, the records indicate Ehrsam showed interest in arranging a meeting during the funding round.

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The documents show that Epstein’s team had direct interactions with Ehrsam, a member of the Coinbase Board of Directors and co-founder, who discussed a possible meeting in New York linked to a $3 million investment.

“I have a gap between noon and 3 PM today, but again, not crucial for me, but would be nice to meet him if convenient. Is it important for him?” Ehrsam wrote in an email chain that involved representatives from Brock Pierce’s VC firm, Blockchain Capital. In the same thread, another email notes that Epstein was “in a full afternoon board meeting yesterday.”

Coinbase did not respond to a request for comment.

In an email dated Dec. 2, 2014, Pierce — the child actor turned entrepreneur who later co-founded Block.one, which subsequently launched CoinDesk parent Bullish Global in 2021 — reached out to Epstein regarding an opportunity to invest in Coinbase’s Series C fundraising round.

Pierce, who also co-founded Tether and reportedly had a long-standing relationship with Epstein, wrote, “On another diligence call with the co-founder. First close happened today. Round should be fully committed by Wednesday. $12M / 20% of the round can be taken. This is the most platinum-plated deal in the space.”

On the same day, Epstein consulted LinkedIn co-founder Reid Hoffman on whether to participate in the round. Hoffman responded that he did not possess in-depth knowledge of Coinbase and advised against participation, stating, “I probably wouldn’t play.”

Nevertheless, Epstein opted to invest in the company independently from Blockchain Capital.

Emails from Blockchain Capital co-founder W. Bradford Stephens dated Dec. 3, 2014, indicate that Blockchain Capital planned to invest approximately $3.25 million in Coinbase, distributed across three affiliated entities.

Within the same email thread, Epstein’s long-time associate Darren Indyke identified the investing entity as “IGO Company, LLC, which is a USVI limited liability company.”

A valuation report dated Dec. 31, 2014, included in the DOJ release outlines a transaction described as “Purchase of Coinbase via IGO LLC (3,001,000),” and lists Coinbase as an investment held through IGO LLC in that amount.

‘Opportunity to invest’

As numerous businesses and individuals mentioned in the Epstein documents have sought to distance themselves, legal and reputational risks have emerged as significant concerns. In 2023, JPMorgan Chase and Deutsche Bank collectively paid $365 million to resolve lawsuits from Epstein’s victims, who claimed the banks facilitated his sex-trafficking operation by offering financial services.

In this context, Blockchain Capital, which is frequently referenced in the documents, stated that the original fund investment was never finalized.

Blockchain Capital did not respond to a CoinDesk inquiry, but in an emailed statement to Decrypt, a representative mentioned, “In 2014, Brock Pierce was in contact with Mr. Epstein concerning fundraising. As part of those discussions, an opportunity to invest in Coinbase’s Series C was also discussed via email.”

The representative further noted that a fund investment “was never consummated,” and that Epstein instead invested independently through IGO Company LLC.

However, a few years later, Blockchain Capital sought to purchase Epstein’s stake in the crypto exchange.

In January 2018, Blockchain Capital began discussions with Epstein’s associate, Indyke, about acquiring the Coinbase position held through the LLC. “We would be willing to buy the position from you at a $2b [billion] valuation,” Stephens wrote, adding that Blockchain Capital would pay approximately $15 million for the stake.

Subsequent emails indicate negotiations aimed at selling half of the Coinbase position held in IGO LLC. Indyke stated that Epstein believed the company’s value surpassed $3 billion and that he had received “two other bids” for the stake.

On Jan. 31, 2018, Stephens replied that Blockchain Capital’s offer to purchase 50% of the position at a $4 billion valuation remained valid.

“The price for the 50% interest is $14,666,667,” Stephens wrote, a figure that would suggest a profit of over $11 million on the portion of the Coinbase stake sold, according to the emails. In a Feb. 1, 2018 email, Indyke confirmed agreement to the transaction, stating, “Jeffrey agrees that he will sell you 50% of his LLC.”

A valuation report dated Aug. 31, 2018, indicated that Epstein had divested half of his Coinbase stake, stating “50% sold for $15mm [million] Feb 2018.”

Epstein was apprehended on federal sex trafficking charges on July 6, 2019, and was detained at the Metropolitan Correctional Center in New York City. He died by alleged suicide on Aug. 10, 2019, after being found unresponsive in his cell.