$9.6B Lawsuit: Former Ethereum Adviser vs. US Gov’t

Steven Nerayoff, an early adviser to the Ethereum network, has taken legal action against the United States government, alleging false charges and mistreatment by federal agents during the period of 2019 to 2023. Nerayoff, known for accusing Ethereum co-founder Vitalik Buterin of fraud, has filed a lawsuit under the Federal Tort Claims Act (FTCA), seeking $9.6 billion in damages for an extortion case brought against him in 2019. The legal battle spanned four years, eventually ending when the U.S. government dismissed the lawsuit in May 2023. Recently, a new SF-95 filing posted by journalist Eleanor Terrett from FOX Business revealed the core arguments of Nerayoff’s lawsuit. He claimed that federal agents were aware of the unfounded nature of the charges and accused some of them of engaging in harassment tactics, including fabrication of evidence, to prosecute him. Nerayoff’s legal team believes that the damage caused to his reputation and businesses justifies filing a lawsuit against the U.S. government.

The filing asserts that the wrongful conduct of federal agents irreparably harmed Nerayoff’s well-being, personal life, and career. It also mentions his significant financial burden due to the need for legal defense while suffering a loss of income as a result of becoming an outcast in the crypto community. Notably, Nerayoff enlisted the expertise of prominent lawyer Alan Dershowitz as a consultant on the case, who has characterized it as “unusual.”