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Ethereum Co-Creator Steven Nerayoff Arrested by the FBI

Ethereum co-creator & CasperLabs co-founder Steven Nerayoff arrested yesterday by the Federal Bureau of Investigation (FBI), he is accused of threatening to destroy a new Seattle based startup company that specializes in generating user traffic to clients’ products by issuing its own cryptocurrency tokens as loyalty rewards.

According to a press release published by the U.S. Attorney for the Eastern District of New York and the FBI’s New York Field Office, in November 2017, the company planned an Initial Coin Offering (ICO) to raise capital, and signed an agreement with Ethereum co-creator Mr Nerayoff in which he agreed to help the company complete a successful ICO in return for 22.5% of all funds raised. However, days before the ICO, Nerayoff demanded an additional 17,000 ETH, valued at nearly $8.5 million , or he would sabotage the ICO and destroy the company. 

The charges in the complaint are allegations, and the defendants are presumed innocent unless and until proven guilty.  If convicted, Nerayoff may face up to 20 years’ imprisonment.

June G. Bauer

Pop cultureaholic, Technology expert, Web fanatic and a Social media geek. If you have any questions or comments please feel free to email her at june@thecoinspost.com or contact her on Twitter @JuneTBauer1

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