Steven Nerayof, former Ethereum advisor, sues US government for $9.6 BILLION

ONE of Ethereum's early advisors has filed a $9.6 billion lawsuit against the US government.

Steven Nerayoff, who was arrested along with his colleague Michael Hlady in 2019 for extortion, is claiming mistreatment and false charges by federal investigators.

The pair were accused of threatening to bring a crypto start-up company to its knees if they didn't pay Nerayoff and Hlady cryptocurrency worth millions of dollars.

Despite being hauled before the courts for an initial hearing, the charges were eventually dropped in 2023.

Narayoff says he is suing the government because its investigators knew the extortion charges were unsubstantiated. He has also filed claims the federal agents intimidated and harassed him, and that they also falsified evidence to bring about a conviction.

“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," the filing states.

"He incurred significant legal fees to defend himself while simultaneously losing income as a result of becoming a feared pariah in the crypto community.”

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