The internet and crypto circles have been abuzz with recent claims alleging Israel’s control over the Bitcoin network and its developers, sparked by the release of Jeffrey Epstein files. However, a closer examination reveals these allegations lack credible evidence and rely heavily on speculation. Let’s break down the facts and separate truth from fiction.
What Sparked the Controversy?
The controversy began when SwanDesk CEO Jacob King cited supposed Epstein files that claim a financial connection between Israel and Bitcoin developers. King’s allegations included claims that Israel paid the salaries of around 60% of Bitcoin developers and that Epstein financially supported Blockstream, influencing Bitcoin’s price and code.
Debunking the Allegations
Despite the allegations gaining traction, findings from the recently released Epstein files through the U.S. Department of Justice’s (DOJ) Transparency Act show otherwise. Here’s what the evidence reveals:
- No Proven Israeli Payrolls: There is no documented proof that Israel paid Bitcoin core developers or controlled Bitcoin operations.
- Epstein’s Limited Role: Between 2002 and 2017, Epstein donated $850,000 to MIT, and some of this money went to the Digital Currency Initiative (DCI) to fund the salaries of Bitcoin Core developers. This funding came during a period of financial uncertainty following the shutdown of the Bitcoin Foundation but did not lead to long-term influence or control.
- Blockstream Stakes Sold: Epstein briefly invested in Blockstream, a company connected to Bitcoin infrastructure, but his stake was later sold. According to Blockstream CEO Adam Back, there are no existing financial ties to Epstein today.
Connections to Former Israeli Figures
The claims also reference former Israeli Prime Minister Ehud Barak, who reportedly visited Epstein’s residence during the same period. Yet, these visits do not establish any proven links between Israeli entities and Bitcoin control. Furthermore, while Epstein may have served as a backchannel for Israeli interests in other areas, no evidence supports the claim of state-sponsored Bitcoin control.
The Myth of “Unbacked Tether” and Bitcoin Manipulation
Separate allegations suggest Bitcoin’s price might be manipulated using unbacked Tether tokens. However, even these claims lack evidence of centralized control or influence over Bitcoin core developers. Cryptocurrency’s decentralized nature inherently resists external governing bodies or monopolies.
Clear Conclusions
The Epstein files, while revealing interesting information about financial donations and personal connections, do not substantiate claims that Israel controls Bitcoin or its network. As the cybersecurity and blockchain world continues to evolve, separating speculation from fact remains crucial for transparency and trust.
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