Former Ethereum adviser files $9.6B lawsuit against US gov’t

Steven Nerayoff, who played an early role in guiding Ethereum, has initiated a legal action against the US administration for allegedly making false accusations and mishandling him by federal agents from 2019 to 2023.

Nerayoff, who has publicly accused Ethereum co-founder Vitalik Buterin of fraud, filed a Federal Tort Claims Act (FTCA) lawsuit against the US government seeking $9.6 billion in damages. In this suit, he alleges that he was extorted in a case dating back to 2019.

The courtroom fight continued for approximately four years before the US administration dropped the case in May 2023.

Based on a recent SF-95 document shared by Eleanor Terrett of FOX Business, Nerayoff alleges that federal agents knew the accusations against him were unfounded when they filed the lawsuit.

Additionally, he claimed that certain individuals resorted to bullying and deceitful methods, such as manufacturing proof, to accuse him of extortion and bring charges against him.

Nerayoff’s lawyers argue that the harm inflicted on Nerayoff’s reputation and businesses warrants taking the U.S. government to court. According to the complaint:

“As a direct and proximate result of the wrongful conduct of federal agents and/or officers, 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.”

Based on Terrett’s report, Nerayoff engaged Alan Dershowitz, a well-known lawyer, for advice on the case. Dershowitz finds the case to be distinct or extraordinary.

This is a developing story, and further information will be added as it becomes available.

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2024-04-09 16:53