Bitcoin Crash, Backlash Erupts Against Adam Back, Gavin Andresen, Tether’s Brock Pierce

After Coinbase’s early funding links to sex offender Jeffrey Epstein, new files by the US Department of Justice sent shockwaves through the crypto community as it reveals name of early Bitcoin developers and investors. It has triggered a sharp downturn in BTC price and sparked backlash against prominent figures like Blockstream CEO Adam Back, lead developer Gavin Andresen, and Tether co-founder Brock Pierce.

Epstein Files Reveal Ties to Early Core Bitcoin Developers

Epstein files reveal Epstein’s investments and early connections in the Bitcoin ecosystem dating back to the mid-2010s. Jeffrey Epstein invested up to $500,000 in Blockstream, a Bitcoin infrastructure company co-founded by Austin Hill and cypherpunk Adam Back, during its 2014 seed round. The deal was facilitated through former MIT Media Lab director Joi Ito.

Hill emailed Ito and Epstein to say he would increase their allocation in Blockstream at other investors’ expense. “We are 10x oversubscribed on an $18m seed round and Reid at the last minute told us to bump your allocation from $50k to $500k,” Austin Hill wrote.

Critics assert that early Bitcoin Core developers were influenced through Epstein-linked funding channels to purposely limit the network’s on-chain scaling and become a threat to fiat and banking systems.

Adam Back has faced backlash and asked to resign for compromising Bitcoin scaling. However, Back has denied direct personal links to Jeffrey Epstein and claims Blockstream severed ties with Epstein many years ago.

Blockstream co-founder Austin Hill and team members Kelly Zakka, Ellaina Atra, Francesca Hall’s names appeared in the emails with Epstein, according to ColinTalksCrypto.

Mentions of Gavin Andresen and Tether’s Brock Pierce in Epstein Files

Epstein invested millions in Coinbase’s 2014 Series C round through IGO Company LLC. Brock Pierce, an early Bitcoin investor and Blockchain Capital partner, helped broker the deal. At this time, the Bitcoin Foundation saw multiple resignations as Pierce became the board chairman. Tether co-founder appeared frequently in the files, including emails arranging meetings and investor updates with Epstein.

Epstein’s donations to MIT’s Digital Currency Initiative indirectly supported Bitcoin Core developers during the Bitcoin Foundation’s 2015 funding crisis. This included salaries for figures like early Bitcoin developers such as Gavin Andresen, Wladimir van der Laan, and Cory Fields.

Gavin Andresen was appointed by Satoshi Nakamoto to lead Bitcoin Core. Andresen himself rejected direct outreach from Epstein in 2011 emails, with no evidence of further involvement. However, Epstein was in contact with Bitcoin developer Amir Taaki, whom he met earlier in 2011.

Social media discussions accuse early Bitcoin funding of being tainted, with some claiming Epstein influenced the project during lean years.

Bitcoin Price Impact

Bitcoin price saw massive profit booking, dropping sharply 8% to a low of $70,034. Analysts point to intensified institutional selling pressure as the primary driver, but the timing of the Epstein files has amplified jitters.

The crypto market crash wiped out $650 billion in a week. Some speculate that the controversy is contributing to the downturn by eroding confidence among retail and institutional holders.

Industry figures like Back continue to distance themselves. Blockstream and Blockchain Capital emphasized that they severed ties with Jeffrey Epstein. Bitcoin advocate and Strike CEO Jack Mallers defended the Bitcoin network, describing it as a “neutral, open-source public utility. He further remarked that BTC is not a person or institution and has no secrets.