Recent disclosures from the latest release of Jeffrey Epstein”s files have unveiled connections between the early Bitcoin development community and the disgraced financier. Notably, Adam Back, a prominent figure in cryptocurrency and co-founder of Blockstream, along with his partner Austin Hill, were found to have ties with Epstein, who was an investor in their company back in 2014.
Emails between Back and Hill indicated that Epstein had invested in Blockstream indirectly through a fund managed by Joi Ito, the former director of the MIT Media Lab. This financial relationship has sparked significant interest, considering Epstein”s notorious background as a convicted sex offender. The documentation suggests that Back and Hill were invited to Epstein”s infamous island during the period of his investment.
Back is widely recognized in the cryptocurrency space for his contributions to cryptography, particularly for his proof-of-work system, Hashcash, which inspired the mining mechanism of Bitcoin. Blockstream has since established itself as a vital infrastructure developer within the Bitcoin ecosystem, notably through its work on the Liquid Network, a Bitcoin sidechain.
The correspondence began with an email from Epstein to Hill on April 15, 2014, where Epstein requested a phone call and provided his contact number. Hill replied shortly after, noting he was unable to reach Epstein but mentioned that he was still available for a meetup on Epstein”s island.
On April 19, 2014, Epstein mentioned in another email that he had “Adam Back on my island this weekend,” further indicating the nature of their acquaintance. Another email exchange detailed an invitation to attend a comedy event in Montreal, which Epstein ultimately could not attend. Hill later updated Epstein, informing him that the Blockstream team had enjoyed the show.
In November 2014, an Italian venture capitalist reached out to Epstein for his opinion on Back, to which Epstein simply replied, “like him.”
In response to the emerging scrutiny regarding their ties to Epstein, Back took to social media to clarify their relationship. He emphasized that the connection was purely financial and highlighted that Epstein”s investment was made through Ito”s fund, which later divested its stake in Blockstream due to potential conflicts of interest.
Back asserted that Blockstream has no ongoing financial ties to Epstein or his estate, seeking to distance the company from the controversy. He refrained from mentioning any visits to Epstein”s island in his public statements.
Additionally, other documents released revealed that Epstein was an early investor in Coinbase, contributing $3 million in 2014 when the exchange was valued at around $400 million. Epstein later sold half of his Coinbase investment in 2018 for a substantial return.
This situation underscores the sometimes murky waters of early cryptocurrency investments and the unexpected affiliations that can arise within the industry. As the cryptocurrency landscape continues to evolve, the implications of such connections warrant further examination.
