Ethereum Insider Sues FBI: “Government Weaponization & Holding People Accountable”

Ethereum Insider Sues FBI: "Government Weaponization & Holding People Accountable"
Table of Contents


  • Ethereum Advisor’s Lawsuit: Steven Nerayoff, a former Ethereum insider, has filed a lawsuit against Michael Hlady and Marianna Shooshani, accusing them of a fraudulent scheme causing him significant financial losses.
  • Alleged Fake Consultancy: Nerayoff claims that the defendants created a bogus consultancy firm, North Star Ventures Corp, which deceitfully took over $750,000 from him for non-existent consulting services.
  • #EthGate Controversy: The lawsuit highlights Nerayoff’s campaign against what he calls #EthGate, alleging government agency weaponization and stressing the need for accountability in the regulation of digital currencies.

Steven Nerayoff, a former Ethereum insider, has filed a lawsuit against alleged FBI collaborators, Michael Hlady (also known as Michael Peters) and Marianna Shooshani. The case, lodged in the Supreme Court of New York, Nassau County, accuses the defendants of orchestrating a fraudulent scheme that led to significant financial losses for Nerayoff.

Nerayoff, well-known for his work on the Ethereum ICO protocols and as a leader at Alchemist Group LLC, a consultancy and investment firm for blockchain companies, claims that the defendants established a fake consultancy firm named North Star Ventures Corp.

According to the lawsuit, a company called NSV claimed to provide specialized consulting services. The complaint explains how Nerayoff was deceived into giving away more than $750,000 through a fake consulting service.

The legal case explores the defendants’ argument that Hlady’s company, NSV, was made up of former government agents who could offer essential security and business vetting services to Nerayoff’s blockchain projects. The contract guaranteed a wide range of services from people with a collective 125 years of experience in areas vital to business and government functions.

Ethereum Insider’s Crusade Against #EthGate

Ethereum Insider Sues FBI: "Government Weaponization & Holding People Accountable"

Nerayoff took to social media to express his determination to seek justice, stating:

“I am pleased to announce that justice is finally being served against Michael Hlady, a government agent/provocateur who collaborated with FBI agents and others to unjustly prosecute me for nearly four years.” 

He accused the FBI of giving credibility to Hlady, despite being aware of his fraudulent activities unrelated to Nerayoff, and claimed that the government deliberately shielded him from prosecution in 2018.

The case has shed light on the alleged weaponization of government agencies and the importance of holding people accountable. Nerayoff’s legal pursuits hint at a broader campaign to uncover corruption within agencies like the SEC, involved in what he refers to as #EthGate.

This lawsuit represents a significant moment in the intersection of cryptocurrency and law enforcement, highlighting the complexities and potential vulnerabilities within the burgeoning blockchain industry. As the case unfolds, it promises to set precedents and raise questions about the role of government agencies in the regulation and oversight of digital currencies and their associated ecosystems.

The cryptocurrency community is closely watching the outcome of this case, which could have far-reaching implications for the industry and for individuals’ rights against alleged government overreach. Nerayoff’s fight for justice is not just a personal battle but a symbol of the broader struggle for transparency and accountability in the age of digital finance.


Follow us on Social Networks

Crypto Tutorials

Crypto Reviews