Steven Nerayoff, one of the first advisors of the ethereum network, has presented serious accusations against the regulatory and law enforcement agencies of the United States government. His statements, made in response to a recent X post by Senator Elisabeth Warren about Binance, shed light on what he describes as systemic corruption within these agencies.
Senator Warren’s post drew attention to Binance CEO Changpeng Zhao’s guilty plea for violating anti-money laundering laws, portraying it as part of a broader trend of criminality in the crypto space. He urged the Justice Department to investigate Binance for allegedly misleading Congress. This tweet, which highlights the need for strict regulatory oversight, inadvertently set the stage for Nerayoff’s revelations.
ethereum Insider Targets SEC Corruption Information
In a charged response to Senator Warren, Nerayoff didn’t mince his words. “FIGHT SYSTEMIC CORRUPTION EVERYWHERE: Senator Warren, I advocate for strong crypto regulations in the US. PLEASE go after bad actors in our space. But the DOJ, the SEC and the FBI prosecuted me for three and a half years for a crime THEY invented,” he stated, speaking openly of his own experience with these agencies.
Furthermore, he stated: “I was attacked because of my knowledge of high-level corruption at the SEC. “The government pressured me to report other crypto players, regardless of their culpability, which I refused to even consider.” These allegations arise from a deeply controversial legal battle. Nerayoff was initially accused, along with his employee, of extorting a Seattle-based cryptocurrency startup during its ICO in 2017.
However, in a surprising turn of events, a New York judge dismissed criminal racketeering charges against him in May 2023, ending a protracted three-and-a-half-year legal battle. This dismissal came after federal prosecutors admitted to obtaining exculpatory evidence and acknowledged their inability to prove the charges beyond a reasonable doubt.
Nerayoff’s defense painted a picture of a man attacked for his inside knowledge. According to his legal team, he was forced to provide information on various players in the crypto industry, a demand he consistently rejected.
The defense alleged that the charges were a fabrication, part of a grand scheme by the FBI, DOJ and SEC to take advantage of their industry connections. “My case was dismissed after proving that the FBI, DOJ, and SEC colluded to fabricate the crime for which they were prosecuting me,” Nerayoff said, indicating a deep-rooted rot within these institutions.
Nerayoff collects information through FOIA
This claim of systemic corruption takes an even darker turn with Nerayoff’s most recent revelation about receiving a letter from the SEC for his FOIA request. In it, the SEC admits to having discovered more than 14 gigabytes of data relevant to his case, a stark contradiction to his previous stance of not getting involved.
This discovery and the SEC’s delayed response to his request for documentation further fueled his allegations of misconduct. He expressed disbelief and sarcasm at the SEC’s timeline for reviewing these documents, suggesting a deliberate attempt at obfuscation.
Surprisingly, Nerayoff is currently preparing his fraud charges against ethereum founder Vitalik Buterin and Joseph Lubin, after releasing a 2015 recording between him and Buterin. The recording shows Nerayoff’s deep involvement with ethereum.
At press time, eth was trading at $2,061.
Featured image from YouTube / Forkast News, chart from TradingView.com
