Steven Nerayoff, a former adviser to Ethereum, has initiated a lawsuit against the U.S. government, seeking $9.6 billion. Nerayoff claims this amount as damages for what he alleges were unfounded accusations and harsh treatment by federal agents from 2019 to 2023.

Nerayoff, who has previously levied allegations of fraud against Ethereum Co-Founder Vitalik Buterin, took legal steps through a Federal Tort Claims Act (FTCA) lawsuit, citing wrongful actions in a 2019 extortion charge against him. Between 2019 and 2023, the U.S. government accused the former Ethereum advisor of being involved in an extortion scheme. Charges were based on allegations that Nerayoff and an associate threatened to destroy a cryptocurrency company unless it met his demands for millions of dollars in Ethereum tokens and cash.

In a report by FOX Business journalist Eleanor Terrett, the lawsuit rests on the assertion that federal agents pursued charges against Nerayoff despite knowing the claims lacked merit. The suit further contends that some of these agents resorted to harassment, intimidation, and the alleged fabrication of evidence to press extortion charges. Nerayoff’s legal representation has pointed out that the repercussions on his reputation and business ventures were substantial, warranting legal action against the federal authorities.

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