The Epstein-Crypto Connection: Hidden Investments, Bitcoin Developers, and a DOJ Review

The Epstein Files revealed that Jeffrey Epstein had financial and social connections to crypto circles and Bitcoin’s early institutional ecosystem, like MIT Media Lab and Blockstream. Epstein’s involvement is as a big donor, investor, correspondent, and trusted contact. His presence was prominent when Bitcoin’s future governance, funding, and legitimacy were on a thin scale.

These revelations raised many questions about whether Jeffrey Epstein was connected to Bitcoin’s creators or was the real Satoshi Nakamoto. The documents also point out that Epstein had funding channels, academic labs, and an elite group that worked on the pivotal movement of Bitcoin.

This article will look into more details about these new findings.

Who was Jeffrey Epstein?

Jeffrey Epstein was an American financier born and raised in New York. He is also a convicted sex offender, involved in a massive sex-trafficking scandal that includes many powerful figures from across the globe.

About Epstein Files

The Epstein Files refers to a document of about a thousand pages related to investigations into sex-trafficking offences committed by financier Jeferry Epstein and his accomplice Ghislaine Maxwell. It consists of emails, photos, travel logs, recordings, videos, and other evidence collected by U.S. law enforcement.
The files were initially sealed during the investigation period and legal case proceedings. However, it was released in stages in late 2025 and early 2026 under the new law called the Epstein Files Transparency Act.

Who made the claim about Epstein’s crypto connection?

It was SwanDesk CEO Jacob King who cited the content about Epstein’s connection with cryptocurrency in the Epstein files. He pointed out a conversation between Jeffrey Epstein and Joichi Ito, a Japanese entrepreneur, implying that some Bitcoin core developers received hidden gifts.

Jacob King also claimed that Israel had a connection with the Bitcoin developers. According to the files, about 60% of Bitcoin developers had their salaries paid by Israel. Moreover, he alleged that Epstein and Israel were major investors in Blockstream. It was done for both Blockstream and Tether to influence Bitcoin’s price and code.

Coinbase Investment

According to the records, Epstein invested roughly $3 million in Coinbase in 2014. He invested the amount through a shell company, named IGO Company LLC, during the exchange’s initial stages. By 2018, Epstein reportedly sold half of the stake for approximately $15 million.

Do these claims have any truth?

According to the recent release of millions of documents by the U.S. Department of Justice (DOJ) under the new Epstein Files Transparency Act, there was no evidence that Israel was trying to take control of the Bitcoin network. Moreover, the claim that Israel paid 60% of Bitcoin core developers’ salaries is unsubstantiated.

Epstein’s investment in Blockstream

The MIT Digital Currency Initiative (DCI) records presented that Jeffrey Epstein donated about $850,000 to MIT between 2002 and 2007. According to reports in 2015, this money was used by MIT’s DCI to pay salaries of Bitcoin developers like Gavin Andresen and Wladimir van der Laan. The timing of this fund transfer does not seem like a coincidence. It transferred after the Bitcoin Foundation shut down due to bankruptcy.

Israel’s link to the Bitcoin Foundation and MIT Media Lab

Israel’s connection to the Bitcoin Foundation and MIT Media Lab comes through the former Prime Minister Ehud Barak. According to records, Barak had stayed at Jeffrey Epstein’s New York home several times between 2013 and 2017. This is the same period during which Israel allegedly had control of Bitcoin.

Epstein also reportedly served as an intermediary between Israel and several countries to arrange security deals. In 2015, Epstein donated $850,000 to the MIT Media Lab. At the same time, famous Israeli figures, such as designer Neri Oxman, were senior researchers at the MIT Media Lab who accepted funds.

The files revealed that Epstein was connected to Bitcoin infrastructure. In 2014, he joined an $18 million funding round for Blockstream, which is a firm that employs Bitcoin developers. Blockstream CEO Adam Back responded to these claims. He said that Epstein’s stake was sold off quickly, and the company does not have financial ties to him.

Final Thoughts

After releasing the files, the DOJ officially declared that the review was completed. However, several critics and lawmakers do not agree that it is complete, as nearly half of the 6 million documents remain unreleased.