Steven
Nerayoff, a prominent early advisor to the Ethereum network, has filed a $9.6
billion lawsuit against the United States government. The lawsuit, filed under
the Federal Tort Claims Act (FTCA), alleges that federal agents knowingly
pursued false charges against Nerayoff and engaged in harassment and
intimidation tactics, including evidence fabrication.
Nerayoff was
arrested by the FBI in September 2019 alongside his associate Michael Hlady
on charges of extortion. The authorities claimed they threatened to destroy a cryptocurrency startup if it did not pay millions in ether (ETH), the native cryptocurrency of the Ethereum network. However, after a four-year legal
battle, the US government dismissed the case in May 2023.
In the newest
court filing dated last week, Nerayoff’s legal team has argued that the damages
to his reputation and businesses warrant the substantial lawsuit for $9.6 billion.
“Today I
have filed my Federal Tort Claims Act (FTCA) lawsuit suing the U.S. government
for personal damages related to false prosecution,” Nerayoff wrote on X. “It is
time we took a stand against this unrestrained corruption, for all the people
wrongly accused & to ensure justice against those who have been a part of
this.”
Nerayoff, a
serial entrepreneur and blockchain pioneer, is known for his early involvement
in Ethereum since 2015. He has been at the center of various controversies and
legal battles, including making serious allegations against the Ethereum Co-Founder, Vitalik Buterin, and others regarding fraudulent ICOs, personal misconduct, and
collusion with corrupt officials.
“Mr.
Nerayoff’s well-being, personal life and career were irreparably harmed… He
incurred significant legal fees to defend himself while simultaneously losing
income as a result of becoming a feared pariah in the crypto community,” the
filing stated.
The lawsuit
has garnered attention due to the significant damages sought and the
involvement of prominent lawyer Alan Dershowitz as a consultant on the case.
The outcome of this legal battle could have implications for the cryptocurrency
industry and the US government’s handling of such cases.
Nerayoff’s Allegations
against Buterin
In the
past, Nerayoff accused both Vitalik and his father, Dmitry Buterin, of
coordinating efforts to damage his reputation. He cited a video in which
Vitalik allegedly claimed that Nerayoff was involved in significant fraudulent
activities.
Furthermore,
Nerayoff alleged that the Ethereum Foundation, under Vitalik Buterin’s
guidance, abandoned senior researcher and developer Virgil Griffith after his
arrest for helping North Korea evade sanctions. Nerayoff also claimed that
Vitalik Buterin copied his idea of issuing utility tokens and threatened to
sue over his supposed invention.
In recorded
conversations from 2015, Nerayoff criticized Ethereum ‘s financial management,
particularly the decision not to hedge Ethereum’s Bitcoin holdings during price
fluctuations. He also highlighted issues with Ethereum’s early days, including
lack of operational infrastructure, legal and regulatory risks, poor internal
structure, and co-founder conduct.
Steven
Nerayoff, a prominent early advisor to the Ethereum network, has filed a $9.6
billion lawsuit against the United States government. The lawsuit, filed under
the Federal Tort Claims Act (FTCA), alleges that federal agents knowingly
pursued false charges against Nerayoff and engaged in harassment and
intimidation tactics, including evidence fabrication.
Nerayoff was
arrested by the FBI in September 2019 alongside his associate Michael Hlady
on charges of extortion. The authorities claimed they threatened to destroy a cryptocurrency startup if it did not pay millions in ether (ETH), the native cryptocurrency of the Ethereum network. However, after a four-year legal
battle, the US government dismissed the case in May 2023.
In the newest
court filing dated last week, Nerayoff’s legal team has argued that the damages
to his reputation and businesses warrant the substantial lawsuit for $9.6 billion.
“Today I
have filed my Federal Tort Claims Act (FTCA) lawsuit suing the U.S. government
for personal damages related to false prosecution,” Nerayoff wrote on X. “It is
time we took a stand against this unrestrained corruption, for all the people
wrongly accused & to ensure justice against those who have been a part of
this.”
Nerayoff, a
serial entrepreneur and blockchain pioneer, is known for his early involvement
in Ethereum since 2015. He has been at the center of various controversies and
legal battles, including making serious allegations against the Ethereum Co-Founder, Vitalik Buterin, and others regarding fraudulent ICOs, personal misconduct, and
collusion with corrupt officials.
“Mr.
Nerayoff’s well-being, personal life and career were irreparably harmed… He
incurred significant legal fees to defend himself while simultaneously losing
income as a result of becoming a feared pariah in the crypto community,” the
filing stated.
The lawsuit
has garnered attention due to the significant damages sought and the
involvement of prominent lawyer Alan Dershowitz as a consultant on the case.
The outcome of this legal battle could have implications for the cryptocurrency
industry and the US government’s handling of such cases.
Nerayoff’s Allegations
against Buterin
In the
past, Nerayoff accused both Vitalik and his father, Dmitry Buterin, of
coordinating efforts to damage his reputation. He cited a video in which
Vitalik allegedly claimed that Nerayoff was involved in significant fraudulent
activities.
Furthermore,
Nerayoff alleged that the Ethereum Foundation, under Vitalik Buterin’s
guidance, abandoned senior researcher and developer Virgil Griffith after his
arrest for helping North Korea evade sanctions. Nerayoff also claimed that
Vitalik Buterin copied his idea of issuing utility tokens and threatened to
sue over his supposed invention.
In recorded
conversations from 2015, Nerayoff criticized Ethereum ‘s financial management,
particularly the decision not to hedge Ethereum’s Bitcoin holdings during price
fluctuations. He also highlighted issues with Ethereum’s early days, including
lack of operational infrastructure, legal and regulatory risks, poor internal
structure, and co-founder conduct.
