Steven Nerayoff, an early advisor to the Ethereum network, has initiated legal action against the U.S. government, alleging false accusations and misconduct by federal agents spanning from 2019 to 2023. Nerayoff, previously known for publicly accusing Ethereum co-founder Vitalik Buterin of fraud, has filed a Federal Tort Claims Act (FTCA) lawsuit seeking $9.6 billion in damages over a 2019 extortion case against him, which concluded with the government dismissing the charges in May 2023.
According to newly released SF-95 documents by Fox Business reporter Eleanor Terrett, Nerayoff contends that federal agents were aware of the baselessness of the accusations against him. He further asserts that some agents resorted to harassment, intimidation tactics, and fabricating evidence in their pursuit of racketeering charges against him.
Nerayoff's legal team argues that the repercussions on his reputation and business are substantial grounds for the lawsuit against the U.S. government. The filed documents state that Nerayoff's personal life, career, and well-being suffered irreparable harm due to the alleged misconduct of federal agents, resulting in significant legal fees and lost income within the cryptocurrency community.
To handle the case, Nerayoff enlisted prominent attorney Alan Dershowitz, a move deemed "unusual" by observers. Nerayoff, recognized as a serial entrepreneur, lawyer, and inventor of multiple international patents, co-founded blockchain consulting firm Alchemist and played a pivotal role in early cryptocurrency projects such as Ethereum since 2015.
Nerayoff's legal woes began in September 2019 when he and his Alchemist colleague Michael Hlady were arrested by the FBI on racketeering charges. The authorities alleged that Nerayoff and Hlady threatened to "destroy a cryptocurrency startup if millions of dollars were not paid" in Ethereum. These accusations add to Nerayoff's history of controversies and legal battles within the cryptocurrency space, where he has been a central figure in various disputes involving Ethereum's development, fraudulent activities, and allegations of collusion and misconduct.
