Steven Nerayoff, an early consultant for the Ethereum network, has taken legal action against the United States government, alleging false charges and mistreatment by federal agents between 2019 and 2023.
Nerayoff, who gained attention 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 lawsuit lasted for approximately four years before being dismissed by the U.S. government in May 2023.
According to a new SF-95 filing by FOX Business journalist Eleanor Terrett, Nerayoff sued the federal government based on claims that its agents were aware of the unfounded nature of the charges. He also argued that some agents engaged in harassment and intimidation tactics, including the fabrication of evidence, in an attempt to prosecute him for extortion.
Nerayoff’s legal team believes that the damage caused to his reputation and businesses warrants a lawsuit against the U.S. government. The filing states:
“According to Terrett, Nerayoff enlisted the services of renowned lawyer Alan Dershowitz as a consultant on the case, who considers it to be ‘unusual.'”
Nerayoff is a serial entrepreneur, attorney, inventor of multiple international patents, and the founder of blockchain consulting firm Alchemist. He is also a blockchain pioneer, known for his early involvement in projects such as Ethereum in 2015.
Nerayoff and his Alchemist associate Michael Hlady were arrested by the Federal Bureau of Investigation (FBI) in September 2019. Both were charged with 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 battles throughout his career in the cryptocurrency industry. He has previously made serious allegations against Ethereum founders Buterin and Joe Lubin, as well as the Ethereum Foundation.
These allegations include claims of fraudulent initial coin offerings, personal misconduct, and collusion with corrupt officials. One of Nerayoff’s claims is that Ethereum received preferential treatment from regulators, which has been dubbed “ETHGate” within the community.