Key Highlights
- A 2014 email involving Austin Hill, Joichi Ito, and Reid Hoffman sparked rumors linking Ripple and Stellar to Jeffrey Epstein.
- Joichi Ito acknowledged past ties to Epstein through MIT Media Lab funding and apologized for his involvement.
- Ripple CTO Emeritus David Schwartz said there is no evidence that Ripple, Stellar, or their teams had any connection to Epstein.
XRP supporters are criticizing Bitcoin advocates for spreading claims that Ripple is connected to Jeffrey Epstein. The dispute began after the U.S. Department of Justice released millions of files on Epstein on Friday, followed by the circulation of a 2014 email that some interpreted as evidence of an alleged link to Ripple and Stellar. However, XRP supporters have pushed back, arguing that Ripple had nothing to do with Epstein.
Who is Jeffrey Epstein
Jeffrey Epstein was a wealthy American financier who became widely known for serious crimes, including sex trafficking of minors. He had connections with influential figures across business, politics, and the tech world.
Epstein also ran private investment funds and had ties to organizations like MIT Media Lab, where he had donated money through the foundations he controlled. He died in 2019 while in jail awaiting trial. Because of his wealth and connections, individuals and companies that had indirect links to him are often scrutinized, even when there is no evidence of wrongdoing.
What sparked the rumor
The rumor came from a 2014 email that had the names of four people: Austin Hill, Jeffrey Epstein, Joichi Ito, and Reid Hoffman. At the time, Hill was CEO and co-founder of Blockstream, a Bitcoin-focused company. He sent the email to Epstein and Ito, copying Hoffman, who was a Blockstream board member.
According to crypto influencer Leonidas, the email does not show Ripple working with Epstein but reflects early competition between Bitcoin and projects like Ripple and Stellar. Hill reportedly pressured Epstein and Ito to reduce or remove support for Blockstream unless they “picked a horse” in the crypto race.
Ripple CTO Emeritus clears the air
Ripple CTO David Schwartz responded to the recent claims, stating that he knows of no “connection between Epstein and Ripple, XRP, or Stellar.”
In an X post on Saturday, Schwartz said that he knows of no evidence suggesting anyone at Ripple or Stellar ever met Epstein or people closely linked to him.
He added that while some tech and people in the crypto industry had indirect links to Epstein, this is not unusual because he knew many wealthy and influential figures. Schwartz said the rumors were caused by misunderstandings of old emails from 2014, which he described as efforts by Bitcoin supporters trying to influence investors during an early competition in the crypto industry.
He also said that back then, few people imagined that giving out most of a cryptocurrency’s supply could later be worth billions of dollars. Schwartz made it clear that criticism of Ripple’s structure has nothing to do with Epstein.
Connection between Joichi Ito, MIT, and Epstein
Joichi Ito had links across multiple tech and crypto projects. He co-founded Digital Garage, which invested in Blockstream, and served as an advisor to the Stellar Foundation in 2014. He was also connected to Epstein through donations made to the MIT Media Lab.
Ito later issued a public apology, saying, “I take full responsibility for my error in judgment. I am deeply sorry to the survivors, to the Media Lab, and to the MIT community for bringing such a person into our network.” He confirmed the lab received money from Epstein-linked foundations and promised to return the funds or donate an equivalent amount to nonprofit organizations supporting survivors of trafficking.
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