Former Ethereum advisor and Crypto Insider, Steven Nerayoff, has revealed that the U.S. Securities and Exchange Commission (SEC) had a list of individuals in the cryptocurrency industry that they were targeting, with tech journalist Naomi Brockwell being one of them. According to Nerayoff, the SEC sought his assistance in pursuing these individuals.
In a widely noticed post, Nerayoff accused the regulatory agency of conspiring to target prominent figures in the crypto space. He stated:
“For months, they informed my lawyers that they were interested in gathering information on anyone significant in the crypto world, or else I would face a lengthy prison sentence.”
Despite failing to secure his cooperation, Nerayoff alleged that the SEC pursued a malicious prosecution against him for three years, even though they were aware of his innocence. In May, a New York Judge dismissed the criminal extortion charges against Nerayoff, as the prosecutors were unable to substantiate the allegations in the indictment.
Subsequently, Nerayoff has made a series of explosive allegations against U.S. regulators. This latest revelation coincides with John Deaton joining the LBRY vs. SEC lawsuit on behalf of Naomi Brockwell.
LBRY, a platform for file-sharing and payments, is challenging a judgment rendered against it on July 11, 2023. The SEC had accused LBRY of offering unregistered crypto asset securities. Following the outcome of the Ripple vs. SEC case, LBRY hopes to leverage Judge Analisa’s ruling to overturn its own case. The July judgment against LBRY resulted in civil penalties and a prohibition from participating in unregistered security offerings.
Nerayoff contends that the lawsuit against LBRY is one of the most extreme actions taken by the SEC against crypto institutions. He also commended Naomi’s resilience and John Deaton’s involvement in the ongoing case.
These recent allegations are likely to intensify calls for greater ethical standards and transparency within the SEC. Given their relentless pursuit of cryptocurrency institutions this year, the agency has faced a growing number of concerning allegations, ranging from ETHGate accusations to accusations of personal bias and potential conflicts of interest.