Blockchain accelerator Techstars cancels accelerator with Steven Nerayoff’s firm Alchemist after his arrest

Layer 1s • October 8, 2019, 2:50AM EDT
UPDATED: October 8, 2019, 7:17AM EDT
The Block

Blockchain accelerator Techstars has ended its partnership with Steven Nerayoff’s firm Alchemist after he was arrested last month in an alleged multi-million-dollar cryptocurrency extortion scheme.

Techstars told The Block on Monday that the move was “necessary," given several issues that have arisen around the viability of their partnership.

THE SCOOP

Keep up with the latest news, trends, charts and views on crypto and DeFi with a new biweekly newsletter from The Block's Frank Chaparro

By signing-up you agree to our Terms of Service and Privacy Policy
By signing-up you agree to our Terms of Service and Privacy Policy

Steven Nerayoff is a technology entrepreneur involved with Ethereum, CasperLabs, tZero and other cryptocurrency projects, and via his firm Alchemist, he partnered with Techstars in 2018 to help blockchain entrepreneurs succeed. Nerayoff was co-lead of an accelerator program in New York City.

Now that the partnership has ended, Alchemist is no longer part of the program. Techstars told The Block that it will continue to work with other firms and mentors through its several accelerator programs.

Nerayoff wasa arrested last month by U.S. authorities on charges of extortion. He allegedly threatened to destroy a Seattle-based startup that issued cryptocurrency tokens as loyalty rewards to help clients attract users and sell products. He faces up to 20 years in prison if convicted.

About Author

Yogita Khatri is a senior reporter at The Block, covering all things crypto. As one of the earliest team members, Yogita has played a pivotal role in breaking numerous stories, exclusives and scoops. With nearly 3,000 articles under her belt, Yogita holds the records as The Block's most-published and most-read author of all time. Prior to joining The Block, Yogita worked at crypto publication CoinDesk and The Economic Times, where she wrote on personal finance. To contact her, email: [email protected]. For her latest work, follow her on X @Yogita_Khatri5.

More by Yogita Khatri