Steven Nerayoff, previously an esteemed advisor to Ethereum, has launched a formidable legal battle against the United States government, seeking a staggering $9.6 billion in damages.

Nerayoff's lawsuit arises from what he contends were baseless accusations and severe mistreatment by federal agents spanning from 2019 to 2023.

The former Ethereum advisor, who had previously lodged fraud allegations against Ethereum Co-Founder Vitalik Buterin, has now taken decisive legal action by filing a lawsuit under the Federal Tort Claims Act (FTCA). This legal maneuver aims to address what Nerayoff perceives as wrongful actions stemming from a 2019 extortion charge leveled against him.

During the tumultuous period between 2019 and 2023, U.S. government officials accused Nerayoff of involvement in an alleged extortion scheme. The charges revolved around assertions that Nerayoff and an associate purportedly issued threats to a cryptocurrency company, coercing it into meeting demands for millions of dollars in Ethereum tokens and cash.

A comprehensive report by FOX Business journalist Eleanor Terrett highlights that Nerayoff's lawsuit hinges on the assertion that federal agents pursued charges against him despite being aware of the unsubstantiated nature of the claims. Furthermore, the lawsuit contends that certain agents engaged in acts of harassment, intimidation, and purportedly fabricated evidence in their pursuit of the extortion charges.

Legal representatives acting on behalf of Nerayoff emphasize the profound repercussions inflicted upon his reputation and business endeavors as a result of the ordeal, thus warranting the commencement of legal proceedings against the federal authorities.