Steven Nerayoff, an early consultant to the Ethereum network, has initiated legal action against the United States government, alleging false charges and mistreatment by federal agents from 2019 to 2023.
Nerayoff, who gained notoriety for publicly accusing Ethereum co-founder Vitalik Buterin of fraud, has filed a lawsuit under the Federal Tort Claims Act (FTCA), seeking $9.6 billion in damages for the extortion case brought against him in 2019.
The legal battle spanned four years, ultimately resulting in the dismissal of the lawsuit by the U.S. government in May 2023.
According to a new filing on SF-95 by FOX Business journalist Eleanor Terrett, Nerayoff sued the federal government on the grounds that its agents were aware of the unfounded nature of the charges. He also alleged that some agents resorted to harassment and intimidation tactics, including fabricating evidence, to prosecute him for extortion.
Nerayoff’s legal team contends that the damage inflicted on his reputation and businesses is significant enough to warrant a lawsuit against the U.S. government. The filing states:
“Due to the baseless charges brought against Mr. Nerayoff and the subsequent mistreatment by federal agents, his reputation and businesses have suffered irreparable harm. As a result, we seek $9.6 billion in damages to rectify the substantial losses incurred.”
According to Terrett, Nerayoff enlisted the services of prominent lawyer Alan Dershowitz as a consultant for the case, who believes it to be “unusual.”
Nerayoff, a serial entrepreneur, attorney, inventor of multiple international patents, and founder of blockchain consulting firm Alchemist, is also recognized as a pioneer in the blockchain industry. He played a key role in projects like Ethereum in 2015.
Source: Steven Nerayoff
In September 2019, Nerayoff was apprehended by the Federal Bureau of Investigation (FBI) alongside his Alchemist associate Michael Hlady. Both individuals faced charges of extortion, with authorities alleging that they threatened to “destroy a cryptocurrency startup if they were not paid millions of dollars” in Ether (ETH).
Nerayoff has been involved in various controversies and legal disputes within the cryptocurrency sphere. The former Ethereum advisor has consistently criticized Ethereum in the past, making serious allegations against founders Buterin, Joe Lubin, and the Ethereum Foundation.
Nerayoff’s allegations have encompassed multiple facets of Ethereum’s development and operations, including fraudulent initial coin offerings, personal misconduct, and collusion with corrupt officials. One of his claims is that Ethereum received preferential treatment from regulators, which has come to be referred to as “ETHGate” within the community.
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