bitcoin ripple sabotage allegations

While crypto enthusiasts were busy debating block sizes in 2014, a behind-the-scenes power struggle was brewing between Bitcoin purists and alternative blockchain projects. Newly released documents from the Epstein Files Transparency Act reveal a surprising glimpse into this battle through a July 31, 2014 email sent by then-Blockstream CEO Austin Hill to Jeffrey Epstein and others, including tech investor Joi Ito.

The email, reportedly titled “Stellar isn’t so Stellar,” shows Hill’s attempts to dissuade investment in both Ripple and Stellar, viewing them as existential threats to Bitcoin’s future. Talk about crypto drama! Hill didn’t mince words, arguing these projects would fragment developer focus and dilute investment capital needed for Bitcoin’s success.

Bitcoin maximalists saw Ripple and Stellar as wolves in sheep’s clothing, threatening to divide the ecosystem’s limited resources.

Hill’s frustration centered on Jed McCaleb, who co-founded Ripple before launching Stellar in 2014. Blockstream was established in 2014 with a mission to advance Bitcoin technology through innovations like sidechains. Two competing payment systems from the same creator? Hill wasn’t having it. He framed supporting both projects as “contamination” rather than healthy competition, calling it a dangerous “two horses in the same race” scenario.

The email criticized Ripple’s company-led model and its outreach to banks and regulators — actions Bitcoin maximalists saw as undermining crypto’s foundational principles. When Stellar emerged as Ripple’s decentralized competitor, Hill urged immediate divestment from both. Bitcoin’s market dominance of over 60% suggests Hill’s concerns about competition didn’t ultimately undermine its position as the leading cryptocurrency.

Despite Epstein’s inclusion on the email chain, no substantive project involvement has been confirmed. Ripple’s CTO David Schwartz firmly denied any connections between Epstein and company personnel. The email appears to reflect social circles rather than direct influence.

The revelations have reignited decade-old tensions in the crypto world. Bitcoin purists still view Ripple’s XRP and Stellar as corporate attempts to co-opt blockchain technology. Meanwhile, supporters of these projects argue their designs serve different purposes entirely. Leonidas Hadjiloizou from the XRP community interpreted the email as pressure on investors to choose sides against Ripple and Stellar.

Funny how the crypto world’s biggest battles happen in email threads, not on blockchains. Some things never change.

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