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Newly Released Epstein Files Spark Unfounded Claims About Israeli Control of Bitcoin Network
Amid the ongoing release of Jeffrey Epstein-related documents, a controversial claim has emerged suggesting that Israel secretly took control of the Bitcoin network over a decade ago. The allegation, which has gained traction on social media platform X and in cryptocurrency circles, attempts to link the Epstein files with Bitcoin core developers, blockchain technology company Blockstream, and stablecoin issuer Tether.
The claim originated from SwanDesk CEO Jacob King, who cited what he described as an Epstein file document allegedly showing a conversation between Jeffrey Epstein and Joichi Ito, a Japanese entrepreneur. According to King, the document suggests Bitcoin core developers received covert gifts, with Israel purportedly paying salaries for approximately 60% of Bitcoin developers. He further alleged that Epstein and Israel were major investors in Blockstream, and claimed both Blockstream and Tether could manipulate Bitcoin’s price and code.
However, a thorough fact-checking investigation has found these claims lack substantial evidence and misrepresent documented connections.
The U.S. Department of Justice (DOJ) recently released millions of documents under the Epstein Files Transparency Act, but none provide evidence supporting the claim that Israel hijacked control of the Bitcoin network. The assertion that Israel paid 60% of Bitcoin core developers remains completely unsubstantiated, with no documentation demonstrating Israeli state payrolls or centralized hiring of developers.
Epstein did have connections to the cryptocurrency ecosystem, but they were limited and indirect. MIT Digital Currency Initiative (DCI) records show Epstein donated approximately $850,000 to MIT between 2002 and 2017. In 2015, a portion of this money was used by MIT’s Digital Currency Initiative to fund salaries of Bitcoin Core developers, including Gavin Andresen and Wladimir van der Laan, at a time when the Bitcoin Foundation’s financial support for developers had become uncertain.
The alleged Israeli connection centers primarily around former Prime Minister Ehud Barak. Records confirm Barak stayed at Epstein’s New York residence several times between 2013 and 2017, coinciding with the period when Israel allegedly gained control over Bitcoin. Reports also suggest Epstein functioned as an intermediary for Israeli interests, helping arrange security deals in various countries.
In 2015, Epstein made an $850,000 donation to the MIT Media Lab, where prominent Israeli figures like designer Neri Oxman held senior research positions during the time the lab was accepting Epstein’s funding.
Regarding Blockstream, Epstein did participate in an $18 million funding round for the company in 2014. However, Blockstream CEO Adam Back has since clarified that Epstein’s investment was relatively minor—reportedly between $50,000 and $500,000—and his stake was quickly divested, with the company maintaining no current financial ties to Epstein.
“That fund later invested a minority stake in Blockstream’s seed round, meaning Epstein had an indirect investment in Blockstream,” Back explained in a social media statement responding to the allegations.
The claims about Tether’s role in price manipulation appear to be separate allegations entirely. While questions about Tether’s backing have circulated in cryptocurrency markets for years, these claims do not demonstrate control over the Bitcoin network, influence over Bitcoin developers, or government manipulation of the cryptocurrency.
Bitcoin’s decentralized architecture specifically makes it resistant to takeover attempts. The network relies on thousands of independent nodes globally and an open development process where code changes require broad community consensus, making claims of centralized control technically implausible.
The timing of these claims coincides with increased public interest in both the Epstein files and Bitcoin’s recent price movements, creating fertile ground for conspiracy theories that connect unrelated events.
While connections between Epstein and certain figures in the cryptocurrency world did exist, the evidence falls far short of supporting claims of Israeli state control over Bitcoin. Until credible evidence emerges, these allegations remain speculative and unverified, highlighting the importance of critical evaluation of sensational claims in the cryptocurrency space.
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16 Comments
While I appreciate the author’s effort to investigate potential conflicts of interest in the crypto space, these particular claims about Israel’s alleged influence over Bitcoin’s development feel quite speculative. I’d want to see much more substantive evidence before believing them.
Absolutely. Healthy skepticism is warranted, but this article doesn’t provide a compelling case. More rigorous analysis would be needed to back up such serious allegations.
While I’m always interested in learning about potential conflicts of interest or outside influence in the crypto space, the claims in this article seem quite speculative. I’d want to see more substantive evidence before putting much stock in these allegations.
Absolutely. Cryptocurrency and blockchain are complex topics, and it’s important to approach such claims with a critical eye. More rigorous investigation would be needed to validate these particular assertions.
Interesting allegations, but they seem quite speculative and lack solid evidence. I’d want to see more concrete proof before believing claims of Israel’s alleged control over Bitcoin’s core development.
Agreed. The connections made in this article feel like a stretch. Extraordinary claims require extraordinary evidence.
While I’m always wary of conspiracy theories, I do think it’s important to scrutinize the potential influence of powerful individuals and organizations on emerging technologies like Bitcoin. But these particular claims seem unsubstantiated.
Absolutely. Healthy skepticism is warranted, but this article doesn’t seem to provide a compelling case. More rigorous investigation would be needed to back up such serious allegations.
While I’m always interested in learning about potential outside influence in the crypto space, the specific claims in this article feel quite speculative. Blockchain politics can get convoluted, so I’d want to see much more substantive evidence before believing these allegations about Israel’s role.
Absolutely. Healthy skepticism is warranted, but this article doesn’t provide a compelling case. More rigorous analysis would be needed to back up such serious claims about the Bitcoin network.
Provocative allegations, to be sure, but I’m not convinced the article provides enough solid evidence to back them up. Cryptocurrency and geopolitics can be a tangled web, so I’d want to see a more thorough, impartial analysis before drawing any conclusions.
Agreed. Extraordinary claims require extraordinary proof, and this article doesn’t seem to meet that standard. More transparency and fact-checking would be needed to lend credibility to these types of assertions.
The idea of Israel secretly controlling Bitcoin’s core development is certainly eye-catching, but I’m not convinced the evidence here is strong enough. Cryptocurrency and blockchain politics can get convoluted, so I’d want to see a more thorough analysis.
Agreed. Extraordinary claims require extraordinary proof, and this article doesn’t seem to meet that bar. More transparency and fact-checking would be needed to lend credibility to these assertions.
Interesting theory, but the connections made in this article seem like a real stretch. Cryptocurrency and geopolitics can be a tangled web, so I’d want to see a more thorough, impartial investigation before putting much stock in these kinds of claims.
Agreed. Extraordinary claims require extraordinary proof, and this article doesn’t seem to meet that bar. More transparency and fact-checking would be needed to lend credibility to these assertions.