Ex-Ethereum advisor files $9.6 billion lawsuit against the U.S. for dismissing extortion allegations
Steven Nerayoff, a former adviser to Ethereum, has filed a lawsuit against the U.S. government, seeking $9.6 billion in damages. Nerayoff alleges that he faced baseless accusations and harsh treatment from federal agents between 2019 and 2023.
Nerayoff, who previously made fraud allegations against Ethereum Co-Founder Vitalik Buterin, initiated the lawsuit under the Federal Tort Claims Act (FTCA). He claims that wrongful actions were taken against him in a 2019 extortion charge.
During the period in question, the U.S. government accused Nerayoff of participating in an extortion scheme. The charges were based on allegations that Nerayoff and an associate threatened to destroy a cryptocurrency company unless they received millions of dollars in Ethereum tokens and cash.
According to a report by FOX Business journalist Eleanor Terrett, the lawsuit argues that federal agents pursued charges against Nerayoff despite knowing that the claims were baseless. The suit also alleges that some agents engaged in harassment, intimidation, and the fabrication of evidence to support the extortion charges.
Nerayoff’s legal team emphasizes the significant impact on his reputation and business ventures, which justifies taking legal action against the federal authorities.
