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Epstein files show crypto ties to Coinbase, Blockstream: DOJ

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Epstein files show crypto ties to Coinbase, Blockstream: DOJ

Convicted sex offender Jeffrey Epstein’s hidden crypto investments came to light in a new release of so-called Epstein files — documents from the U.S. Department of Justice (DOJ), revealing his $3 million stake in Coinbase and links to Bitcoin developer Blockstream.

Summary

  • Epstein invested $3 million in Coinbase in 2014 through a U.S. Virgin Islands-based entity.
  • Epstein also backed Bitcoin developer Blockstream in 2014 but sold his stake months later due to conflicts of interest.
  • The revelations are part of a new batch of documents released by the U.S. Department of Justice.

Epstein, according to Bloomberg, invested in Coinbase through a U.S. Virgin Islands-based entity in 2014, years after his criminal conviction. The deal was brokered by Brock Pierce, a cryptocurrency mogul and former child actor, and Brad Stephens, co-founder of Blockchain Capital.

At the time, Epstein’s $3 million investment represented less than 1% of Coinbase, which was valued at $400 million. Emails indicate that Coinbase co-founder Fred Ehrsam was aware of Epstein’s involvement, though it’s unclear whether a planned meeting ever took place.

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Blockchain Capital attempted to acquire part of Epstein’s stake in 2018, and Epstein even considered reinvesting during Coinbase’s Series E round. The company went public in 2021 and is now valued at nearly $50 billion.

Epstein crypto dealings didn’t end with Coinbase

Epstein also backed Bitcoin-focused company Blockstream in 2014 but sold his stake a few months later due to conflicts of interest.

In a statement, Blockstream CEO Adam Back clarified that the company has no financial ties to Epstein’s estate. Epstein’s involvement in crypto was part of his broader investment portfolio, which spanned finance, media, and technology, securing him access to powerful networks.

These latest revelations, part of thousands of pages of Epstein’s financial records, underscore his deep, secretive ties to the world of digital assets.

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Crypto World

Aave Shutters Avara Brand and Family Crypto Wallet

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Aave Shutters Avara Brand and Family Crypto Wallet

Aave Labs says it is sunsetting its “umbrella brand” Avara in the company’s latest move to refocus on decentralized finance and simplify its branding.

Aave founder and CEO Stani Kulechov posted to X on Tuesday that Avara, a company encompassing projects including the Family crypto wallet and previously the social media platform Lens, “is no longer required as we go all in on bringing Aave to the masses.”

Kulechov said the Apple iOS-based Family crypto wallet was also being wound down as the team has “learned that onboarding millions of users requires purpose-built experiences, such as savings, rather than generic, open-ended wallet experiences.”

The move marks Aave’s latest effort to refocus on products such as its flagship lending protocol as the project handed stewardship of Lens to the Mask Network last month, with Kulechov saying Aave’s role in the protocol would be reduced to an advisory role so it can focus on DeFi.

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Source: Stani Kulechov

Kulechov said in his latest post that Aave was “now united as one team of world-class designers, engineers, and smart contract experts, aligned around a single mission: bringing DeFi to everyone.”

All future projects under Aave Labs

Avara said in a blog post that “all current and future products, including the Aave App, Aave Pro, and Aave Kit, will operate under Aave Labs” to simplify the brand.

It added that accounts linked to the Family wallets “will continue as core infrastructure within Aave Labs products,” but the iOS app would be wound down over the next year.

No new users will be onboarded to the app from April 1, and existing users can continue using the app until April 1, 2027, and will continue to have full access to their funds on Aave’s website.

Related: There is no trust in DeFi without proper risk management

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Aave is the biggest DeFi protocol with $30 billion in total value locked, nearly $9 billion more than the next largest project, the staking protocol Lido, which has $21.7 billion in value locked, according to DefiLlama.