Former Ethereum advisor Steven Nerayoff is suing the U.S. government for $9.6 billion over personal damages caused by false charges brought against him and its alleged cover-up of federal agents’ failings in the case against him, according to a Tuesday court filing.

Originally shared by Fox Business journalist Eleanor Terrett, the lawsuit alleges that Nerayoff’s “well-being, personal life, and career were irreparably harmed” as a “direct and proximate result of the wrongful conduct of federal agents” following the government’s now dropped claims that he criminally extorted an anonymous crypto startup.

Steven Nerayoff’s Multi-Billion Dollar Lawsuit Against U.S. Government

The former Ethereum advisor claims that the United States Securities and Exchange Commission (SEC) and the United States Department of Justice (DOJ) conspired a “collective and concerted fishing expedition” into his business dealings beginning around 2017.

In one blockbuster accusation, Nerayoff is arguing that federal agents wrongfully raided his home, handcuffed him, threw him into the back of a van, and said he would not see his children grow up if he failed to provide them with information on a number key players within the crypto industry.

Former Ethereum Advisor Says Federal Agents Destroyed His Life

Nerayyoff’s lawyers are alleging that federal agents willfully “ignored how they were violating Mr. Nerayoff’s constitutional rights and destroying his life under color of law” in order to “maintain the public appearance that the DOJ and SEC were engaged in legitimate” crypto-related enforcement actions.

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

Specifically, Nerayoff is accusing FBI Special Agent Jordan Anderson of knowingly withholding information and mischaracterizing government evidence to “fabricate the false narrative” that he used “coercive, extortionary threats of violence, physical and/or economic harm” in conducting cryptocurrency-related business dealings.

In 2022, the legal team for the former Ethereum advisor alleged that the U.S. government knew of “irrefutable” evidence that Nerayoff did not engage in any extortionary conduct whatsoever.

The $9.6 billion requested by Nerayoff is based on estimated losses from potential business dealings within the crypto market and legal fees incurred throughout the ordeal.

“To this day, he suffers from the anguish and trauma of being pulled from his bed, handcuffed and stuffed into a van only to be harassed and threatened by federal agents for hours, and prosecuted on false and fabricated charges for several years,” lawyers for the former Ethereum advisor stated. “He incurred significant legal fees to defend himself while simultaneously losing income as a result of becoming a feared pariah in the Crypto community because of the malicious prosecution.”

What The Litigation Means For Crypto Going Forward

Despite the ordeal, Steven Nerayoff seemed optimistic about Tuesday’s court filing in a statement to X Tuesday.

“Today I have filed my Federal Tort Claims Act (FTCA) lawsuit suing the U.S. government for personal damages related to false prosecution,” Nerayoff said. “It is time we took a stand against this unrestrained corruption, for all the people wrongly accused & to ensure justice against those who have been a part of this.”

Tuesday’s litigation marks the latest shocking claim made by Nerayoff after having previously circulated yet-to-be-substantiated claims against Ethereum alleging it received favorable treatment by U.S. regulators.

If true, the litigation would stain attempts made by U.S. officials to regulate the cryptocurrency sector as a whole better.