Newly released court documents reveal Jeffrey Epstein placed a $3 million investment in Coinbase during the exchange's 2014 Series C funding round. The deal was facilitated by Tether co-founder Brock Pierce and Blockchain Capital at a $400 million valuation.
According to @coinbureau on X, email records show Coinbase co-founder Fred Ehrsam was aware the funds originated from Epstein.
"LATEST: Newly released Epstein files show Jeffrey Epstein invested $3M in Coinbase in 2014. Emails show Coinbase co-founder Fred Ehrsam knew the funds were being placed on Epstein's behalf."
The investment came through an LLC structure managed by Epstein's attorney Darren Indyke. Documents obtained from the Department of Justice detail extensive email exchanges between Blockchain Capital's W. Bradford Stephens and Epstein's legal team throughout December 2014.
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Blockchain Capital Orchestrated Three-Entity Investment
The December 2014 transaction split Epstein's $3.25 million total investment across three entities. Crypto Currency Partners II LLC contributed $3 million, while Crypto Currency Partners II LP added $200,000 and Crypto Currency Partners LP invested $50,000.
Email correspondence shows Ehrsam directly communicating with Stephens and Pierce about meeting Epstein during the funding negotiations. The Coinbase co-founder wrote he had availability between noon and 3 PM to meet, though he noted it was not crucial.
Pierce, who left Blockchain Capital in May 2017, played a central role in connecting Epstein to the investment opportunity. The documents reveal Stephens apologizing for communication delays, citing Epstein being in a full afternoon board meeting.
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Secondary Sale Negotiations Valued Position at $15M by 2018
By January 2018, Blockchain Capital approached Epstein about purchasing his Coinbase stake. The firm offered $15 million for the full position, representing a 10x return on the original $3 million investment based on a $2 billion company valuation.
Legal documents show multiple counteroffers exchanged between parties. Epstein's attorney Indyke initially requested $11 million for 50% of the holdings, recognizing the company had already surpassed $3 billion in value.
The final negotiated price settled at approximately $12-15 million for half the position, calculated against a $4 billion Coinbase valuation. Stephens noted Blockchain Capital's new fund lacked Coinbase exposure and sought secondary positions to fill the gap.
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Investment documents indicate the position was held through IGO Company LLC, a U.S. Virgin Islands limited liability company. Silicon Valley Bank processed the original wire transfer for the Series C round, which priced shares at $16.58926 each.
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The revelations raise questions about early crypto industry vetting procedures during the 2014 venture funding boom when Coinbase was rapidly scaling operations.
3 Key Takeaways:
Epstein invested $3M in Coinbase's 2014 Series C through Blockchain Capital at $400M valuation
Fred Ehrsam knew investment came from Epstein according to newly released court documents
Position valued at $15M by 2018 when Blockchain Capital offered to buy back the stake
This Article First Appeared on: https://www.cryptonewslive.org/article/jeffrey-epstein-invested-3m-in-coinbase-through-2014-deal-arranged-by-tether-co-founder-brock-pierce