Moneycontrol PRO
LAMF
LAMF

How a former Epstein associate rebuilt influence in Japan — and why it’s now backfiring

Joichi Ito’s return to prominence was powered by political backing and public money. New disclosures about his ties to Jeffrey Epstein are putting that second act at risk.
February 27, 2026 / 14:31 IST
How a former Epstein associate rebuilt influence in Japan — and why it’s now backfiring

After being forced out of elite American institutions over his links to Jeffrey Epstein, tech entrepreneur Joichi Ito found a new base of influence in Japan. With the support of senior figures in the Japanese government, he emerged as a key adviser to a flagship, publicly funded technology initiative meant to position Tokyo as a global start-up hub.

That comeback is now under strain, the New York Times reported. Universities that were meant to anchor the project are backing away, and newly released Epstein files have reopened questions Japanese officials once chose to sidestep.

From MIT scandal to a Japan comeback

Ito resigned in 2019 from his role leading the Media Lab at Massachusetts Institute of Technology after reporting revealed he had helped conceal millions of dollars in donations linked to Epstein. He also stepped down from roles at Harvard University, the MacArthur Foundation, and the board of The New York Times.

Two years later, he resurfaced in Japan, taking a post at a small private university near Tokyo. What followed was a much bigger opportunity. In 2022, then prime minister Fumio Kishida announced plans for a major research and entrepreneurship hub in Tokyo, later known as the Global Startup Campus Initiative.

The project, now backed by more than $400 million in public funding, aims to link Japanese start-ups with top universities in the United States and elsewhere.

A surprise appointment that raised alarms

Initially, Ito was not part of the government team shaping the initiative. That changed in early 2024, when a memo circulated naming him as one of three figures who would guide the project’s strategy, alongside senior government officials.

The appointment came as a surprise to some inside Japan’s bureaucracy and academia. According to officials and internal documents reviewed by The New York Times, several universities were uneasy about associating with a project tied to someone whose resignation from MIT had become a global symbol of institutional failure around Epstein.

The decision was backed by influential figures within Japan’s long-ruling Liberal Democratic Party and later championed by Prime Minister Sanae Takaichi, who has made the initiative a centrepiece of her economic growth agenda.

Universities quietly pull back

As government officials approached potential academic partners, resistance emerged. Universities including MIT, Harvard, Carnegie Mellon University, and Keio University in Japan conveyed reluctance to participate if Ito remained involved, according to emails and interviews cited in the report.

Carnegie Mellon confirmed it was not participating. MIT officials warned Japanese counterparts that faculty cooperation would be difficult under the circumstances. Institutions that were meant to give the project global credibility instead kept their distance.

Publicly, the initiative lists only a handful of “pilot” partners, and it has fallen behind its original timeline.

New Epstein disclosures complicate matters further

The project’s troubles deepened after the latest release of Epstein-related documents by the US Justice Department. Those files shed new light on the depth of Ito’s relationship with Epstein, including thousands of emails, repeated visits to Epstein’s private island, and discussions of undisclosed funds routed through MIT.

In one 2014 exchange, Ito referred to a “slush fund” connected to Epstein-linked money. Such details have reinforced concerns among potential partners, according to government and university officials who spoke anonymously.

Ito declined to comment for the article. In earlier statements, he has said he regrets soliciting Epstein’s donations but denied any knowledge of Epstein’s crimes.

Why the Japanese government stood by him

Japanese officials have defended Ito’s role by pointing to the absence of criminal charges against him and his experience in global tech and venture capital. A cabinet secretariat spokeswoman said the government believed Ito was “highly knowledgeable” and useful as an adviser.

That stance reflects a broader pattern in Japan, where reputational damage without criminal conviction often carries less weight in official decision-making. Critics argue that this approach is increasingly out of step with global expectations, especially when public money and international partners are involved.

A project at a crossroads

The Global Startup Campus Initiative still needs parliamentary approval to become a formal operating entity. That decision is expected by July. Without broader university participation, its ambitions — and justification for heavy public funding — are in question.

For now, Ito remains involved, but pressure is mounting. Lawmakers have raised objections in Parliament, and civil society voices argue the government can no longer ignore the implications of his past ties.

What this episode reveals

Ito’s attempted rehabilitation highlights how differently countries handle reputational accountability — and how globalised institutions like universities can become fault lines in that process.

Japan offered Ito a second act when US institutions shut their doors. The question now is whether, as scrutiny intensifies, that second act can survive international expectations it can no longer easily evade.

MC World Desk
first published: Feb 27, 2026 02:31 pm

Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!

Subscribe to Tech Newsletters

  • On Saturdays

    Find the best of Al News in one place, specially curated for you every weekend.

  • Daily-Weekdays

    Stay on top of the latest tech trends and biggest startup news.

Advisory Alert: It has come to our attention that certain individuals are representing themselves as affiliates of Moneycontrol and soliciting funds on the false promise of assured returns on their investments. We wish to reiterate that Moneycontrol does not solicit funds from investors and neither does it promise any assured returns. In case you are approached by anyone making such claims, please write to us at grievanceofficer@nw18.com or call on 02268882347