US Faces $9.6 Billion Lawsuit from Ex Ethereum Consultant Over Dropped Extortion Accusations

Steven Nerayoff, previously associated with the Ethereum network as an adviser, is initiating a legal battle against the U.S. government, demanding $9.6 billion for damages related to a 2019 legal challenge that was eventually withdrawn.

Nerayoff’s legal representatives claim he was unjustly targeted by the FBI and federal prosecutors with the aim of coercing him into disclosing information about prominent figures within the cryptocurrency industry.

BREAKING: Today I have filed my Federal Tort Claims Act (FTCA) lawsuit suing the U.S. government for personal damages related to false prosecution. It is time we took a stand against this unrestrained corruption, for all the people wrongly accused & to ensure justice against… https://t.co/PQZjz6Ewcp

— Steven Nerayoff (@StevenNerayoff) April 9, 2024

Nerayoff has formally indicated his intention to sue the U.S. for the substantial damages linked to his 2019 detention on charges of criminal extortion, charges which his legal team has described as “unfounded” and “manufactured.”

The preliminary step in pursuing a lawsuit against the Department of Justice (DOJ), as outlined by Nerayoff’s Federal Tort Claims Act (FTCA) submission, requires the implicated agencies to be notified about the lawsuit at least six months before it is officially filed.

Alan Dershowitz, a prominent civil liberties attorney, has confirmed his involvement as a consultant on constitutional matters for Nerayoff’s impending legal action.

BREAKING:

Steven Nerayoff, former Ethereum advisor, sues US government for $9.6 billion.

— WhaleFUD (@WhaleFUD) April 10, 2024

The allegations against Nerayoff were dismissed in May 2023, following the prosecutors’ acknowledgment of discovering crucial exculpatory evidence that rendered them incapable of substantiating the indictment’s charges to the required legal standard.

This concession came after Nerayoff’s attorneys had submitted a motion to dismiss the case, which contained severe allegations against the federal investigators and prosecutors engaged in the investigation.

Nerayoff and his legal team argue that he was the target of a complex, prolonged trap set by the Federal Bureau of Investigation (FBI) aimed at pressuring him into providing evidence against key individuals in the cryptocurrency sector.

Former Ethereum advisor Steven Nerayoff sues US government for $9.6 billion over 'fabricated' charges https://t.co/tGh6fP66QT

— The Block (@TheBlock__) April 9, 2024

They recount an incident on September 17, 2019, where Nerayoff was apprehended by several FBI agents and interrogated for hours under the threat of being separated from his young children if he failed to cooperate.

The U.S. government has refuted most of Nerayoff’s accusations, including his claim that Michael Hlady, his colleague and co-defendant in the extortion charges, was acting as a government informant.

To all who've stood by me, thank you. It's time to hold accountable those who've caused turmoil in my life and the lives of many others. Momentum is building, and each day brings clearer truth. This fight is about restoring integrity to America. THE BATTLE RAGES ON! 💥🔥👊

Full… pic.twitter.com/zAlwpKU9vv

— Steven Nerayoff (@StevenNerayoff) April 11, 2024

Hlady, previously convicted of defrauding Catholic nuns, was allegedly placed in Nerayoff’s circle by the FBI to facilitate their case against him.

In a recent development, the government opted to withdraw the charges against Hlady, allowing him to retract his guilty plea to the extortion charges and instead plead guilty to a separate charge of wire fraud stemming from a fraudulent scheme conducted while he was released on bond.

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