Newly released emails have unveiled a fascinating insight into Jeffrey Epstein’s engagement with the world of cryptocurrency, specifically his attempts to secure the expertise of Steve Bannon to navigate U.S. crypto tax and regulatory policy in 2018. These correspondences portray Epstein not only as an early advocate for cryptocurrency but also indicate his acute awareness of the potential implications with respect to taxation and regulation.
In a February 2018 email, Epstein reached out to Bannon, who was then closely associated with President Donald Trump, inquiring whether the U.S. Treasury Department would respond to his inquiries about cryptocurrency policy. Epstein expressed urgency, suggesting the need for clarity on the matter and the possibility that they might need alternative routes to press the issue with federal authorities.
Bannon’s response indicated that discussions around cryptocurrency were being handled by the National Security Council rather than the Treasury Department at that time. Epstein acknowledged this but emphasized the importance of the Treasury’s office of terrorism finance, suggesting that considerations around tax were certainly in their purview. He recommended the creation of a voluntary disclosure form by the Treasury for realized crypto gains, which he believed would help mitigate risks associated with illicit actors.
The relevance of cryptocurrency to Epstein’s financial dealings had come under scrutiny for years, particularly after he was implicated in a federal money laundering investigation. The emails reveal a marked concern over the regulatory status of cryptocurrencies long before the U.S. government had established clear policies on the subject. In another discussion, Epstein hypothetically illustrated the taxation implications of using Bitcoin for purchases, specifically mentioning buying furniture online from Overstock, one of the first retailers to accept Bitcoin as payment.
Epstein’s correspondences indicate that he conceptualized “our crypto coin issues” primarily concerning U.S. tax regulations and compliance. He noted that the global landscape presented a different set of challenges, describing it as “a whole different bag,” filled with more severe risks. His communication suggested an understanding that proper regulatory frameworks were crucial in distinguishing legitimate cryptocurrencies from potential schemes categorized as Ponzi schemes.
In subsequent emails, Epstein’s thoughts on specific crypto projects gained attention. In September 2018, he emphasized the need for a global approach to cryptocurrency akin to the internet, noting that without coordinated international agreements, crypto could be vulnerable to exploitation. He pointedly remarked, “Otherwise it is a Ponzi scheme outside of the law.”
As discussions around crypto intensified, Epstein’s apprehensions became particularly apparent regarding Facebook’s anticipated stablecoin project, Libra. Just weeks before his arrest in June 2019, Epstein expressed vehement criticism of Libra, arguing that it posed a significant threat to the financial system if mishandled. His concerns about the instability of such innovations underscore the complexities he perceived in the evolving digital currency landscape.
Furthermore, Epstein’s earlier connections to influential figures in the cryptocurrency world, including Brock Pierce of Tether, have surfaced in the context of his expansive correspondence on the subject. His fascination with digital assets was clear, as illustrated in a text message from April 2018, where he quipped about the growing interest in cryptocurrencies, finding it “amusing.”
These developments suggest that Epstein was not merely an investor but also sought to position himself as a participant within the regulatory conversations surrounding cryptocurrency. The implications of these discussions continue to reverberate through the evolving dialogue on cryptocurrency regulation in the U.S. and beyond.
