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Blockchain Pioneer Steven Nerayoff Sues U.S. Government for $9.6 Billion Over Alleged False Charges and Mistreatment

Steven Nerayoff, a prominent figure associated with the early development of the Ethereum network, has initiated legal action against the U.S. government, alleging false accusations and improper conduct by federal officials spanning from 2019 to 2023.

Known for his controversial claims against Ethereum co-founder Vitalik Buterin, Nerayoff seeks $9.6 billion in damages through a lawsuit under the Federal Tort Claims Act (FTCA) related to an extortion case lodged against him four years prior.

The dispute, which concluded in May 2023 with the dismissal of the charges by the U.S. government, centers on accusations deemed by Nerayoff as unfounded and supported by unethical practices, including harassment and evidence fabrication by government agents.

This misconduct, he claims, not only tarnished his reputation and disrupted his business endeavors but also inflicted personal and financial hardships.

The lawsuit filing emphasized the profound impact on Nerayoff’s life and career, highlighting substantial legal expenses and loss of income due to his ostracization within the cryptocurrency community.

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Eleanor Terrett, a journalist for FOX Business, revealed details of the lawsuit, including Nerayoff’s engagement of renowned attorney Alan Dershowitz as an advisor on the case. Dershowitz remarked on the case’s unique nature.

Nerayoff, a serial entrepreneur and legal professional with several international patents to his name, founded the blockchain consulting firm Alchemist.

His early engagement with projects like Ethereum in 2015 established him as a significant figure in the blockchain sector.

The Federal Bureau of Investigation (FBI) apprehended Nerayoff and Michael Hlady, an associate at Alchemist, in September 2019, accusing them of extortion against a cryptocurrency startup.

This incident is part of a series of controversies and legal challenges Nerayoff has faced, including his criticisms of Ethereum, which ranged from allegations of fraudulent activities and misconduct by its founders to accusations of regulatory favoritism—a controversy known within the community as “ETHGate.”

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Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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