TL;DR
- Ethereum insider, Steven Nerayoff is suing the U.S. government for $9.6 billion under the Federal Tort Claims Act (FTCA), alleging wrongful accusations and misconduct by federal officials related to an extortion case that was dismissed in May 2023.
- Nerayoff claims that his reputation and businesses suffered greatly due to unfounded accusations and a lengthy legal dispute. His legal team, which includes former Assistant District Attorney from Manhattan Michael Scotto and esteemed attorney Alan Dershowitz, is now awaiting the court’s decision.
- The lawsuit raises important questions about fairness and accountability in cryptocurrency cases and serves as a reminder to combat unchecked corruption and demand fairness for individuals who have been unjustly charged.
Steven Nerayoff, a former Ethereum insider, is suing the United States government for wrongful accusations and misconduct by federal officials. The lawsuit, submitted under the Federal Tort Claims Act (FTCA), is demanding $9.6 billion in compensation.
Nerayoff, known for publicly accusing Ethereum co-founder Vitalik Buterin of fraud, initiated the legal battle in 2019 over an extortion case. The case, which lasted about four years, was eventually dismissed by the U.S. government in May 2023.
The former Ethereum advisor expressed his gratitude towards Eleanor Terrett from Fox Business for her role in bringing attention to the lawsuit. He also acknowledged his lawyer, Michael Scotto, and others who contributed to the case. Terrett provided detailed information about the lawsuit in her post on platform X. The legal team is now awaiting the court’s decision on this matter.
The SF-95 filing states that Nerayoff believes federal agents knew the charges against him were unfounded. He also alleges that some agents used harassment and intimidation tactics, such as creating false evidence, to go after him.
The Accusations: A Deep Dive into the Ethereum Insider Extortion Case
The lawsuit raises important questions about fairness and accountability in cryptocurrency cases. Nerayoff’s lawyers claim that the harm done to his reputation and businesses warrants the $9.6 billion lawsuit against the U.S. government.
Nerayoff found himself in a legal dispute after being accused of extortion with his partner Michael Hlady by the FBI. They were alleged to have threatened a cryptocurrency company with harm unless they received a substantial sum in Ether.
Despite the dismissal, Nerayoff claims that his reputation and businesses suffered greatly from unfounded accusations and a lengthy legal dispute. The case gains substantial credibility with the participation of Michael Scotto, a former Assistant District Attorney from Manhattan, and the esteemed attorney Alan Dershowitz, serving as a constitutional consultant.
Dershowitz, known for his strong stance against individual targeting by prosecutors, has agreed to consult on Mr. Nerayoff’s case due to its unique circumstances. This highlights the exceptional nature of Nerayoff’s situation.
The lawsuit filed by Nerayoff highlights the difficulties that people in the cryptocurrency sector encounter when they come into contact with law enforcement. It serves as a reminder to combat unchecked corruption and demand fairness for individuals who have been unjustly charged.
