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posted by martyb on Monday September 30 2019, @01:37PM   Printer-friendly
from the It-would-be-a-shame-if-something-happened-to-your-ICO dept.

Ethereum 'ICO architect' arrested over alleged $12M cryptocurrency extortion

Two individuals in the US, including a former advisor to various blockchain projects including Ethereum, ETH have been arrested for their alleged role in a series of multi-million dollar cryptocurrency extortion.

According to a Department of Justice statement, former Ethereum advisor Steven Nerayoff and Michael Hlady were arrested after supposedly threatening to "destroy a startup cryptocurrency company if they were not paid millions of dollars" worth of Ethereum.

"As alleged, Nerayoff and Hlady carried out an old-fashioned shakedown, to be paid off with 21st century cryptocurrency," United States Attorney Richard Donoghue said in the statement.

The targeted company was an unnamed Seattle-based startup that uses cryptocurrency to reward customer loyalty. The unnamed company makes blockchain-based products for those looking to generate and reward user traffic.

The allegations are being lodged against Maple Ventures, an offshoot of Alchemist LLC, a blockchain consultancy founded and headed-up by Nerayoff, CNBC reports.

It's also worth noting that Nerayoff was pivotal in constructing the legal architecture behind Ethereum token offerings. On his own website he claims to have been called the "Architect of the ICO." One of his most recent ventures, – which he co-founded – CasperLabs, debuted its scalable, proof-of-stake blockchain on its testnet earlier this year.


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  • (Score: 1, Touché) by Anonymous Coward on Monday September 30 2019, @02:00PM

    by Anonymous Coward on Monday September 30 2019, @02:00PM (#900789)

    Remember kids, paper money is evil. And uncool. Your grandparents use it.

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