The release of 3mn pages of declassified documents by the US Department of Justice (DOJ) has provided a rare look into the early funding of the digital asset sector.
Epstein Files Reveal Early Crypto Inroads, Coinbase Profits
4 February 2026 - 10:54 CET
The files, made public on 30 Jan under the Epstein Files Transparency Act, reveal that the disgraced financier Jeffrey Epstein was an early participant in the industry, securing a stake in Coinbase during its formative years.
According to the documents, Epstein made a $3mn investment in Coinbase in 2014. The transaction was conducted via IGO LLC, an entity controlled by Epstein, and was routed through Blockchain Capital. Internal DOJ valuation reports suggest the investment was part of a broader $75mn funding round that included several prominent Silicon Valley venture capital firms. While Epstein held a stake of less than 1% and had no role in company governance, the files indicate he was a highly profitable beneficiary of the firm's subsequent growth.
Coinbase profit through Blockchain Capital
The documents show that Epstein’s involvement was facilitated by early interactions with venture capital figures. Emails from December 2014 discuss the mechanics of the investment, with internal reports listing the $3mn purchase as a cash transaction. By early 2018, as the crypto market reached a then-record peak, Epstein moved to liquidate a portion of his holdings.
In February 2018, Epstein sold half of his Coinbase stake back to Blockchain Capital for $15mn. This represented a tenfold return on that specific portion of his initial investment. Blockchain Capital has since clarified that Epstein invested independently and that it parted ways with its former partner, Brock Pierce, in 2017. The records also mention that Coinbase co-founder Fred Ehrsam was included in email chains regarding the financing, though it is not confirmed if any direct meetings took place.
The MIT Media Lab connection
The Epstein web also intersected with the development of Bitcoin infrastructure via the MIT Media Lab. The DOJ files detail Epstein’s relationship with Joi Ito, the former director of the lab, who oversaw the Digital Currency Initiative. Through a fund managed by Ito, Epstein held a minority interest in Blockstream, the blockchain technology firm led by Adam Back.
Adam Back stated on X that Blockstream was introduced to Ito during a 2014 seed-round roadshow. Back noted that Epstein was described at the time as a limited partner in Ito's fund and that the fund subsequently divested its shares due to potential conflicts of interest. The documents suggest Epstein maintained a keen interest in the technical aspects of the industry, even pitching a Sharia-compliant digital currency to officials in Saudi Arabia in 2016.
It is important to state that no one named in this article has been accused of any wrongdoing or faces any legal allegations in relation to these documents. The files reflect the complex nature of early-stage venture capital and the reach of Epstein’s financial network during the first decade of the crypto industry's development.
