Former Ethereum advisor Steven Nerayoff sues US government for $9.6 billion over 'fabricated' charges

An early Ethereum network adviser is suing the U.S. government for $9.6 billion, alleging federal agents “maliciously” investigated and prosecuted him.

In a legal complaint filed April 9, Steven Nerayoff's lawyers allege government agents fabricated federal charges against their client in 2019.

According to the lawsuit, as part of their “collective and concerted fishing expedition,” federal agents subpoenaed, surveilled and even arrested Nearyoff, despite knowing the charges against him were “factually and legally baseless.”

“Federal agents and officers… launched an unhinged and unlawful, four-year campaign against Mr. Nerayoff,” lawyers said in the complaint.

Nerayoff was arrested in 2019 for allegedly extorting 10,000 ether from a crypto startup. The legal battle that ensued lasted roughly four years, ending when the US government dismissed the lawsuit in May 2023.

Nerayoff's lawyers allege that federal agents’ actions have caused their client “significant damages and injuries.” 

“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,” lawyers said in the lawsuit. 

The $10 billion in damages represent losses Nerayoff incurred, due to the harm the legal battle did to his reputation. According to the lawsuit, all of Nerayoff's business partners abandoned him during the legal proceedings, which caused him to lose out on making multiple billions of dollars during a crypto market bull run, including “hundreds of millions of dollars from consulting contracts.”

Nerayoff is the founder of Alchemist, a blockchain consulting firm.

Nerayoff has repeatedly attacked Ethereum in the past, according to a Cointelegraph report, making serious allegations against founders Vitalik Buterin, Joe Lubin, and the Ethereum Foundation.