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

Former Ethereum adviser Steven Nerayoff wants the U.S. government to repay $9.6 billion in damages for extortion charges that were eventually dismissed after four years.

Steven Nerayoff, an early adviser to the Ethereum network, has filed a lawsuit against the United States government for false charges and mistreatment by federal agents between 2019 and 2023.

Nerayoff — known for publicly accusing Ethereum co-founder Vitalik Buterin of fraud — filed a Federal Tort Claims Act (FTCA) lawsuit suing the U.S. for $9.6 billion in damages for the extortion case brought against him in 2019.

The legal battle lasted for about four years, with the U.S. government eventually dismissing the lawsuit in May 2023.

According to the new SF-95 filing posted by FOX Business journalist Eleanor Terrett, Nerayoff sued the federal government based on claims that its agents were aware of the baseless nature of the charges.

He also argued that some agents engaged in harassment and intimidation tactics, including fabrication of evidence, in order to prosecute him for extortion.

Nerayoffs’s legal team believes that damages caused to Nerayoff’s reputation and businesses are significant enough to file a lawsuit against the U.S. government. The filing reads:

“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.”

According to Terrett, Nerayoff hired prominent lawyer Alan Dershowitz as a consultant on the case, who believes that the case is “unusual.”

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