The Epstein case has finally burned down to the backyard of cryptocurrency. The latest decrypted documents show that this 'Lolita Island' owner was not only a broker on Wall Street but also an early infiltrator in the crypto world. Don’t just eat the melon; there are huge market risks hidden inside.
There are two core explosive points in this round of revelations:
First, Brock Pierce, co-founder of Tether and EOS, is mentioned over 1800 times in the documents. The documents reveal that Epstein indirectly invested in Coinbase through Blockchain Capital, with this early 3 million dollars of 'dirty money' from 2014 later turning into 11 million dollars for exit funds. Although Coinbase denies having direct employment, if the SEC catches hold of this funding relationship, the compliance costs will be astronomical.
Second, the 'original sin' of Bitcoin core development funding. Epstein had funded the MIT Media Lab, which indirectly paid salaries to Bitcoin core developers and even participated in Blockstream's seed round financing. Although the technology is innocent, under the current background of institutional entry, if the 'purity' of $BTC is used by regulators to make an issue, the subsequent inflow of ETFs may be hindered.
What's more interesting is that old documents revealed that Blockstream's former CEO reported to Epstein back in the day, claiming that $XRP and $XLM were harmful to the ecosystem. This ancient industry infighting exposed by scandal will only intensify the current community divide.
As a trader, you need to understand the logic behind it:
This is not just a reputation crisis but a compliance black swan. Wall Street fears 'dirty money'. If compliance departments of giants like BlackRock determine that certain early projects or infrastructures are related to Epstein, it could trigger forced divestitures or termination of cooperation.
Finally, let me ask:
When early industry leaders are confirmed to be colluding with the powerful, and even the sources of funds become murky, can you still hold onto the 'institutional coin' in your hand? If regulators take this opportunity to strike, who will be the next to blow up?
