DOJ Emails: Jeffrey Epstein Held $3M Early Stake in Coinbase; COIN Dips 4%
DOJ documents reveal Jeffrey Epstein invested $3M in Coinbase in 2014 via Brock Pierce, cashing out $15M in 2018.
Convicted sex offender Jeffrey Epstein invested $3 million into Coinbase during its 2014 Series B era, according to emails released Friday by the U.S. Justice Department. The tranche of documents indicates the investment was facilitated by Blockchain Capital and Tether co-founder Brock Pierce, with Coinbase co-founder Fred Ehrsam reportedly aware of the solicitation.
Coinbase stock (COIN) reacted negatively to the disclosure, sliding 3.6% to trade near $188 in early Tuesday sessions as compliance officers across the industry scrambled to assess reputational fallout.
The $3 Million Receipt
The emails detail a 2014 arrangement where Epstein funneled capital into the exchange when it carried a valuation of roughly $400 million. Unlike retail purchase orders, this was a venture-grade allocation routed through Pierce’s firm. The timeline places Epstein on the cap table six years after his 2008 conviction in Florida for soliciting prostitution from a minor.
Correspondence suggests high-level visibility within Coinbase. In one thread regarding Epstein, co-founder Fred Ehrsam wrote:
“I have a gap between noon and 3pm today… would be nice to meet him if convenient. Is it important for him?”
No evidence confirms whether the meeting occurred, but the capital flowed. By 2018, with Coinbase’s valuation swelling into the billions, Epstein executed a partial exit. Emails show he sold 50% of his stake back to Blockchain Capital for approximately $15 million, a 400% realized gain, while retaining the remaining equity.
Institutional Fallout
The revelation challenges the narrative that early crypto vetting was merely “loose.” It suggests top-tier firms actively courted capital from known offenders. For Coinbase, now the standard-bearer for U.S. crypto compliance, the link creates a retroactive due diligence crisis.
Market makers are already pricing in the regulatory headache. The DOJ release serves as a vector for renewed scrutiny from the SEC and Elizabeth Warren’s anti-crypto coalition, likely questioning how many other “blind spots” exist in the exchange’s early capitalization records.
