Newly declassified Justice Department documents reveal that Coinbase co-founder Fred Ehrsam was involved in emails regarding a $3 million investment from Jeffrey Epstein in 2014, long after Epstein’s first conviction.
While Epstein’s stake was less than 1% and he had no management role, the records show that Ehrsam expressed interest in a meeting during the financing round.
The files show that Epstein’s team had direct communications with Ehrsam, a Coinbase board member and co-founder, who discussed a possible meeting in New York related to a $3 million investment.
“I have a gap between noon and 3pm today, but again, not essential to me, but it would be nice to meet him if it’s convenient. Is that important to him?” Ehrsam wrote in an email chain that included representatives from crypto entrepreneur Brock Pierce’s VC firm, Blockchain Capital. In the same thread, another email states that Epstein was “at a board meeting yesterday afternoon.”
Coinbase did not return a request for comment.
In an email dated Dec. 2, 2014, Pierce — the child actor-turned-entrepreneur who later co-founded Block.one, which in turn launched CoinDesk parent company Bullish Global in 2021 — approached Epstein about an opportunity to invest in Coinbase’s Series C fundraising round.
Pierce, who also co-founded Tether and reportedly had a long relationship with Epstein, wrote: “On another careful call with the co-founder. First close happened today. Round should be fully committed by Wednesday. $12M / 20% of round up for grabs. This is the most platinum-plated deal in the space.”
That same day, Epstein sought the advice of LinkedIn co-founder Reid Hoffman on whether to participate in the round. Hoffman responded that he didn’t have deep insight into Coinbase and advised against participating, writing, “I probably wouldn’t play.”
But Epstein ended up investing in the company separately from Blockchain Capital.
Emails from Blockchain Capital co-founder W. Bradford Stephens dated December 3, 2014, indicate that Blockchain Capital intended to invest approximately $3.25 million in Coinbase, spread across three affiliates.
Within the same email chain, Epstein’s longtime associate Darren Indyke identified the investing entity as “IGO Company, LLC, which is a USVI limited liability company.”
An appraisal report dated December 31, 2014, included in the DOJ release, shows 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 more companies and individuals named in the Epstein documents have sought to distance themselves from him, legal and reputational risks have become a central concern. In 2023, JPMorgan Chase and Deutsche Bank paid a combined $365 million to settle lawsuits filed by Epstein’s victims who alleged the banks enabled his sex trade by providing financial services.
Against that backdrop, Blockchain Capital, which is heavily featured in the documents, said the initial fund investment was never completed.
Blockchain Capital did not respond to a CoinDesk request for comment, but in an emailed statement to Decrypt, a representative said: “In 2014, Brock Pierce was in contact with Mr. Epstein regarding fundraising. As part of those discussions, an opportunity to invest in Coinbase’s Series C was also discussed via email.”
The representative added that a fund investment “never consummated” and that Epstein instead invested independently through IGO Company LLC.
But a few years later, Blockchain Capital tried to buy Epstein’s stake in the crypto exchange.
In January 2018, Blockchain Capital began discussions with Epstein’s associate, Indyke, to purchase the Coinbase position held through the LLC. “We would be willing to buy the position from you for a $2 billion [billion] valuation,” Stephens wrote, adding that Blockchain Capital would pay about $15 million for the effort.
Later emails show negotiations focused on selling half of the Coinbase position in IGO LLC. Indyke wrote that Epstein believed the company’s value exceeded $3 billion and that he had received “two other offers” for the stake.
On January 31, 2018, Stephens responded that Blockchain Capital’s offer to buy 50% of the position at a $4 billion valuation remained open.
“The price for the 50% interest is $14,666,667,” Stephens wrote, a price that would represent a gain of more than $11 million on the portion of the Coinbase stake that was sold, according to the emails. In a February 1, 2018 email, Indyke confirmed his acceptance of the transaction, writing, “Jeffrey agrees that he will sell you 50% of his LLC.”
A valuation report dated August 31, 2018 said Epstein had sold half of his Coinbase stake, saying “50% sold for $15mm [million] February 2018.”
Epstein was arrested on federal sex-trafficking charges on July 6, 2019, and was being held at the Metropolitan Correctional Center in New York City. He died of an alleged suicide on 10 August 2019 after he was found unresponsive in his cell.
