Executive Summary
The Story So Far
Why This Matters
Who Thinks What?
Jeffrey Epstein, the convicted sex offender, was deeply concerned about U.S. tax policy and regulation for Bitcoin and other cryptocurrencies, actively seeking to influence policy through former White House chief strategist Steve Bannon in 2018, according to newly released emails. The documents reveal Epstein’s engagement in early crypto policy debates, spanning from domestic tax issues and disclosure to global regulatory challenges, and even included sharp criticism of Meta’s (then Facebook’s) stablecoin project, Libra.
Pushing for Treasury Action
In a February 2018 correspondence, Epstein pressed Bannon, President Donald Trump’s onetime confidant, on his ability to get answers from the U.S. Treasury Department regarding crypto. Bannon indicated the National Security Council (NSC) was addressing the issue, but Epstein persisted, highlighting the Treasury’s “office of terrorism finance” as relevant to tax considerations.
Epstein went on to recommend that the Treasury Department create a voluntary disclosure form for realized crypto gains, suggesting it would “fuck all the bad guys.” His communications suggest a growing concern about the regulatory fate of crypto years before the U.S. government established a clear stance.
Global Concerns and Hypotheticals
In a follow-up email to Bannon, Epstein used the hypothetical example of buying furniture with Bitcoin on Overstock, then one of the first major retailers to accept crypto, and realizing a taxable gain. He described “our crypto coin issues” as predominantly U.S.-based, relating to tax, regulation, and disclosure, though it remains unclear who “our” referred to beyond himself.
Epstein also warned of broader international implications, stating, “World wide, a whole different bag. Some bad shit. Very bad.” This suggests his concerns extended beyond domestic policy to the global landscape of digital assets.
Meetings and Public Statements
Epstein’s interest in Bitcoin was widely known, and other emails released by Congress indicate he met with cryptocurrency entrepreneur Brock Pierce, co-founder of stablecoin giant Tether, and former U.S. Treasury Secretary Larry Summers at his Manhattan townhouse sometime before March 2015 to discuss Bitcoin. This meeting was reportedly going to be featured in an unpublished 2015 New York Magazine article.
In a September 2018 text, Epstein advised an associate that “crypto needs to be thought of [as] similar to the internet” and required international agreements and “coordinated understandings.” He warned that without such measures, it would be a “Ponzi scheme outside of the law.”
Criticism of Libra
In June 2019, less than two weeks before his arrest on sex trafficking charges, Epstein launched a tirade against Facebook’s failed stablecoin project, Libra. He argued emphatically in an iMessage to an associate that “Libra is not a currency!! It is money… not the same,” and claimed it “could take down [the] financial system” if in the “wrong hands.”
The convicted financier then asserted, “That’s the reason I didn’t pursue,” though it is unclear if he was referring specifically to Libra or stablecoins generally. Decrypt reached out to David Marcus, Libra’s co-creator, for comment on whether the project ever sought or received interest from Epstein but did not receive a response.
Key Takeaways
The extensive trove of Epstein’s communications underscores his deep engagement with the nascent cryptocurrency landscape and his attempts to shape its regulatory future. His concerns, spanning from tax compliance to systemic financial risks posed by stablecoins, offer a unique, albeit disturbing, glimpse into early high-level discussions surrounding digital assets.
