Ethereum network’s early advisor Steven Nerayoff has filed a lawsuit against the United States government for wrongful accusations and mistreatment by federal agents between 2019 and 2023. Known for publicly accusing Ethereum co-founder Vitalik Buterin of fraud, Nerayoff filed a Federal Tort Claims Act (FTCA) lawsuit against the US, demanding $9.6 billion in damages due to a blackmail case brought against him in 2019.
Prominent Figure Takes Notable Legal Step
The legal struggle lasted approximately four years, and the US government eventually dismissed the case in May 2023. According to a new SF-95 filing reported by FOX Business reporter Eleanor Terrett, Nerayoff has sued the federal government, claiming that its agents were aware that the accusations were baseless.
Nerayoff also claimed that some agents resorted to harassment and intimidation tactics, including fabricating evidence to prosecute him for extortion. Nerayoff’s legal team believes the damage to his reputation and business is significant enough to warrant a lawsuit against the US government. The lawsuit petition states:
“As a direct and proximate result of the wrongful conduct of federal agents or officers, Mr. Nerayoff’s well-being, personal life, and career have been irreparably harmed. While incurring substantial legal expenses to defend himself, he also lost income as a result of becoming a feared pariah in the crypto community.”
Terrett reports that Nerayoff has hired renowned attorney Alan Dershowitz as an advisor, who believes the case is unusual. Nerayoff is a serial entrepreneur, lawyer, inventor of numerous international patents, and founder of the blockchain consulting firm Alchemist. He is also known as a blockchain pioneer for his early involvement in projects like Ethereum in 2015.
What Are the Details of the Issue?
Nerayoff, along with his Alchemist partner Michael Hlady, was arrested by the Federal Bureau of Investigation (FBI) in September 2019. Both Nerayoff and Hlady were charged with extortion, and authorities claimed they threatened to destroy a cryptocurrency venture if millions of dollars were not paid in Ethereum.
An early player in the cryptocurrency field, Nerayoff has been at the center of various controversies and legal battles. The former Ethereum advisor has repeatedly attacked Ethereum in the past, making serious allegations against founders Buterin, Joe Lubin, and the Ethereum Foundation.
Nerayoff’s allegations included various aspects of Ethereum’s development and operations, such as fraudulent initial ICO processes, personal misconduct, and secret deals with corrupt officials. One of Nerayoff’s claims was that Ethereum received preferential treatment from regulators, which was referred to as ETHGate within the community.
