Old-Style Extortionists Try to Destroy a Crypto Startup

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United States authorities have recently apprehended two “old-style” extortionists who attempted to destroy a crypto startup.

The old-style extortionists threatened to destroy the company if they did not receive payments worth millions of dollars.

The United States Attorney’s Office for the Eastern District of New York released a joint statement with the FBI detailing the arrest of both Michael Hlady and Steven Nerayoff. Both of the extortionists have already been charged with extortion of a startup company and have appeared for the first time before the federal court.

As ironic as it is, Nerayoff is a registered lawyer himself. He was supposedly hired to assist in one Seattle-based company’s ICO and Hlady was brought on as “guy in charge of operations”.

The old-style extortionists did not waste any time

Push came to shove as the extortionists revealed their intentions rather quickly as they started to demand millions of dollars in raised capital or company tokens. The lawyer and his partner also refused to provide any services for the company.

The boiling point was reached when the men physically threatened the company’s executive. They said that they would completely sabotage the ICO and by doing so, destroy the entire company.

Richard P. Donoghue, a US Attorney stated:

“The men attempted to conduct an old-fashioned extortion and demanded a 21st century payoff. Our Office and the FBI are committed to protect young businesses from extortion regardless if the extortionists’ demand is for crypto or USD.”

The FBI’s Assistant Director-in-Charge William Sweeney also stated:

“Taking this approach in the modern world is a rather risky business, regardless if the extortionists demand crypto or USD. The FBI will never stop looking to give justice to businesses who have become a target for such old-fashioned extortions.”

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