Former Ethereum advisor Steven Nerayoff has initiated legal proceedings against the U.S. government, seeking a staggering $9.6 billion in damages. Nerayoff alleges unjust accusations and harsh treatment by federal agents spanning from 2019 to 2023.
The lawsuit, filed under the Federal Tort Claims Act (FTCA), stems from what Nerayoff perceives as wrongful actions related to a 2019 extortion charge. Notably, Nerayoff, previously known for leveling fraud allegations against Ethereum Co-Founder Vitalik Buterin, accuses federal authorities of pursuing baseless charges against him.
Between 2019 and 2023, the U.S. government implicated Nerayoff in an extortion plot, alleging that he and an associate threatened a cryptocurrency company with destruction unless substantial sums of Ethereum tokens and cash were provided. According to FOX Business journalist Eleanor Terrett’s report, Nerayoff’s lawsuit contends that federal agents pursued these charges despite being aware of their lack of merit. Additionally, the lawsuit alleges that some agents engaged in harassment, intimidation, and the purported fabrication of evidence to bolster the extortion allegations.
Nerayoff’s legal representation underscores the significant damage inflicted upon his reputation and business endeavors as a result of these actions, providing grounds for legal recourse against the federal authorities.
