A former Ethereum consultant filed a $9.6B lawsuit against the US government
Steven Neraoff, a former advisor to the Ethereum network, has filed a lawsuit against the United States government alleging fraud and abuse by federal agents between 2019 and 2023.
Nerayoff – who is known for publicly accusing Ethereum founder Vitalik Buterin of fraud – filed a US Federal Tort Claims Act (FTCA) lawsuit in 2019 seeking $9.6 billion in damages for a theft case against him.
The legal battle dragged on for four years, and the US government finally dismissed the suit in May 2023.
According to new SF-95 filings posted by Fox Business reporter Eleanor Terrett, Nerayoff accused the federal government that its agents were aware of the baseless nature of the allegations.
It was also argued that some agents are using harassment and intimidation tactics by preparing evidence for illegal prosecution.
Neraoff's legal team believes the damages to Neraoff's name and businesses are sufficient to warrant a lawsuit against the US government. The record reads:
“As a direct and proximate result of the misconduct of federal agents and/or officers, Mr. Neraoff's safety, personal life and career were irreparably harmed. […] For being a feared pariah in the crypto community, he incurred huge legal fees to defend himself while simultaneously losing income.
According to Terrett, Nerayoff has hired prominent attorney Alan Dershowitz as a consultant on the case and believes the case is “unusual.”
Nerayoff is a serial entrepreneur, attorney, inventor of several international patents, and founder of blockchain consulting firm Alchemist. In the year He is a blockchain pioneer known for his early involvement in projects like Ethereum in 2015.
Neraoff was arrested by the Federal Bureau of Investigation (FBI) in September 2019 along with fellow alchemist Michael Hlady. Both Neraoff and Hladi were charged with extortion, and the authorities argued that they threatened to “destroy the cryptocurrency startup if they weren't paid millions.” Dollar” in Ether (ETH).
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An early player in the cryptocurrency scene, Nerayof has been at the center of various controversies and legal battles. The former Ethereum consultant has repeatedly attacked Ethereum in the past, making serious accusations against the founders Buterin, Joe Lubin, as well as the Ethereum Foundation.
Nerayoff's allegations include various aspects of Ethereum's development and operations, fraudulent initial coin offerings, personal wrongdoing and collusion with corrupt officials. One of Nerayof's claims is that Ethereum has received preferential treatment from regulators, which is referred to in the community as “ETHGate.”
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