Newly Unsealed Emails Show Coinbase Leadership Was Aware of Jeffrey Epstein's 2014 Investment
Newly released court documents have shed light on a controversial early chapter in the rise of cryptocurrency exchange Coinbase. Emails unsealed by the U.S. Justice Department show that in December 2014, the company accepted a $3 million investment from Jeffrey Epstein, the financier and convicted sex offender who died in jail in 2019 while awaiting trial on federal sex trafficking charges.
The investment, which valued Coinbase at $400 million at the time, was orchestrated by Tether co-founder Brock Pierce and his venture firm, Blockchain Capital. The emails indicate that Coinbase co-founder Fred Ehrsam was not only aware the funds originated from Epstein but actively sought a meeting with him. "I have a gap between noon and 3pm today... would be nice to meet him if convenient," Ehrsam wrote in a December 3, 2014 email.
Later that same day, Blockchain Capital's Brad Stephens confirmed the deal was proceeding, and Coinbase's wiring instructions were promptly forwarded to Epstein's executive assistant. The revelation places Coinbase's leadership in direct contact with Epstein more than six years after his 2008 Florida conviction for procuring a minor for prostitution, which required him to register as a sex offender.
The documents also reveal Epstein sought advice from LinkedIn co-founder Reid Hoffman, who expressed caution. "I probably wouldn't play," Hoffman advised, though he conceded he might not have the latest internal information. Pierce, however, had enthusiastically pitched the funding round to Epstein as "the most platinum-plated deal in the space."
Further emails show Epstein also invested in crypto infrastructure firm Blockstream in 2014 and that he sold half of his Coinbase stake back to Blockchain Capital in 2018 for nearly $15 million—a five-fold return on his initial outlay—while likely retaining the other half. Coinbase is now valued at approximately $51 billion.
Neither Ehrsam, Coinbase, Stephens, Pierce, nor Blockchain Capital immediately responded to requests for comment on the email disclosures.
Sarah Chen, Financial Compliance Analyst, NYC: "This isn't just about an investment from a bad actor. It's a serious governance failure. For a company that now holds a NYSE listing, this raises profound questions about their historical due diligence processes and the ethical lines that were crossed in the pursuit of growth."
Marcus Johnson, Crypto Investor & Podcast Host: "Let's be real—the early crypto world was the wild west. The focus was on building and securing capital, often from whoever was willing to write a check. This news is uncomfortable, but it reflects the industry's fraught journey from the fringe to the mainstream. The real story is the staggering return Epstein saw."
Dr. Evelyn Reed, Professor of Business Ethics, Stanford: "The emails are damning. They show active engagement, not passive acceptance. Seeking a meeting with a known sex offender for a 'nice-to-have' chat normalizes his involvement and signals that his money was welcome. It's a stark reminder that 'move fast and break things' too often included breaking moral and social contracts."
David Park, Tech Journalist: "The hypocrisy is breathtaking. This is a company that markets itself on building a trusted, compliant gateway to crypto. Yet at a pivotal moment, its founders were willing to sit down with Jeffrey Epstein. It permanently stains the origin story and demands accountability beyond the standard 'no comment.'"