Former Ethereum Adviser Files $9.6 Billion Lawsuit Against US Government Amid Cryptocurrency Dispute
Former Ethereum adviser Steven Nerayoff has taken legal action against the U.S. government, seeking $9.6 billion in damages for false charges and alleged mistreatment. Nerayoff’s lawsuit, filed under the Federal Tort Claims Act (FTCA), stems from extortion charges that were dismissed in May 2023. The case highlights the challenges faced by individuals in the cryptocurrency industry when dealing with law enforcement.
Nerayoff’s legal battle began in 2019 when he and his associate Michael Hlady were charged with extortion by the FBI. The charges were based on allegations that they threatened a cryptocurrency startup unless they were paid millions of dollars in Ether. After a prolonged legal ordeal, the U.S. government eventually dismissed the case.
In his lawsuit, Nerayoff alleges that federal agents were aware of the baseless nature of the charges against him. He claims that some agents engaged in harassment and intimidation tactics, including fabricating evidence, to prosecute him for extortion. Nerayoff’s legal team argues that the damages caused to his reputation and businesses justify the $9.6 billion claim against the U.S. government.
Nerayoff’s case has attracted attention due to its involvement of prominent lawyer Alan Dershowitz as a consultant. Dershowitz believes the lawsuit highlights the challenges faced by individuals in the cryptocurrency industry when dealing with law enforcement.
Throughout the legal battle, Nerayoff made controversial allegations against Ethereum co-founders Vitalik Buterin, Joe Lubin, and the Ethereum Foundation. These allegations, including claims of fraudulent initial coin offerings and conspiracy with corrupt officials, have sparked debates within the cryptocurrency community.
Nerayoff’s lawsuit not only seeks compensation for his own damages but also brings attention to broader issues of fairness and accountability in law enforcement’s approach to cryptocurrency matters.