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- Ethereum adviser Steven Nerayoff has accused government law enforcement and regulatory bodies of systemic corruption.
- Steven Nerayoff’s serious allegations against US government agencies, including the FBI, DOJ, and SEC, escalate the controversy surrounding regulatory actions in the crypto space.
The recent developments at Binance involving the $4.3 billion in settlement with the US DoJ are also unmaking the veil behind the rampant corruption at the top US regulatory agencies.
Steven Nerayoff, an early adviser to the Ethereum network, has levied serious allegations against U.S. government law enforcement and regulatory agencies. Responding to a recent post on X by Senator Elisabeth Warren discussing Binance, Nerayoff’s statements unveil what he claims to be systemic corruption within these agencies.
Senator Warren’s post brought attention to Binance CEO Changpeng Zhao’s guilty plea for violating anti-money laundering laws, framing it as part of a broader pattern of criminality in the crypto space. She called on the DOJ to investigate Binance for alleged deceit towards Congress. This tweet, emphasizing the necessity for stringent regulatory oversight, inadvertently paved the way for Nerayoff’s revelations.
The CEO of the world’s largest crypto exchange pleaded guilty to breaking anti-money laundering laws. This is part of a larger trend of criminal activity in the crypto industry and sadly predictable. I urged @TheJusticeDept to investigate Binance for lying to Congress.
— Elizabeth Warren (@SenWarren) November 21, 2023
Nerayoff Lashes Out At Senator Warren
Responding to Warren’s tweet in a strong-worded message, Nerayoff wrote: “BATTLING SYSTEMIC CORRUPTION EVERYWHERE: Senator Warren, I advocate for strong US crypto regulations. PLEASE go after the bad actors in our space. But the DOJ, SEC, & FBI prosecuted me for 3 1/2 years for a crime THEY fabricated”.
Furthermore, he asserted, “I was singled out due to my awareness of high-level SEC corruption. The government pressured me to provide information about other crypto players, irrespective of their guilt, a proposition I adamantly rejected.” These accusations arise from a highly controversial legal dispute. Initially accused, along with his employee, of extorting a Seattle-based cryptocurrency startup during its ICO in 2017, Nerayoff witnessed a remarkable twist of fate.
In a surprising development, a New York judge dismissed the criminal extortion charges against him in May 2023, putting an end to a prolonged three-and-a-half-year legal ordeal. This dismissal followed federal prosecutors’ admission to obtaining exculpatory evidence and their acknowledgment of the inability to substantiate the charges beyond a reasonable doubt.
Nerayoff’s defense presented a narrative of a targeted individual due to his insider knowledge. According to his legal team, he faced coercion to provide information about various players in the crypto industry, a demand he consistently resisted.
In a related development, Cardano Founder Hoskinson has also spoken out about insider revelations in the Ethereum community. The defense further claimed that the charges against Nerayoff were concocted, forming part of an elaborate scheme orchestrated by the FBI, DOJ, and SEC to exploit his industry connections. “My case was dismissed after proving the FBI, DOJ & SEC colluded to fabricate the crime for which I was being prosecuted,” asserted Nerayoff, revealing a deep-seated issue within these institutions.
SEC’s Admission
The claim of systemic corruption takes a darker turn with Nerayoff’s recent revelation regarding a letter from the SEC in response to his FOIA request. In the letter, the SEC acknowledges the discovery of over 14 gigabytes of data relevant to his case, contradicting their earlier position of non-involvement.
This discovery, coupled with the SEC’s delayed response to his request for documentation, adds weight to his allegations of misconduct. He expressed disbelief and sarcasm at the SEC’s timeline for reviewing these documents, hinting at a deliberate attempt to obscure information.
Notably, Nerayoff is currently preparing fraud charges against Ethereum founder Vitalik Buterin and Joseph Lubin after releasing a 2015 recording between him and Buterin, showcasing Nerayoff’s significant involvement with Ethereum.
