Failed blockchain city plan sparks multimillion-dollar political vendetta in Nevada

07 May 2026 , 22:34

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Five years ago, a Nevada state senator helped put an end to a crypto tycoon’s vision of creating a blockchain city in the Reno desert. Now, that lawmaker is pursuing a higher office, and the crypto tycoon is financially backing her primary opponent with millions.

The ongoing battle in the state attorney general’s race is one example among many of the crypto sector striving to elect industry-friendly officials. In Nevada, it also tells the story of an eccentric multimillionaire whose wealth endangers the political rise of a woman who thwarted his dream.

The financial contributions from crypto entrepreneur Jeffrey Berns are "significant money, especially at this early stage in the primary," said Kenneth Miller, an assistant professor of political science at the University of Nevada, Las Vegas. "And we don’t know if this only represents an initial investment and will be followed up by more."

Spending Big

Berns has donated at least $2.5 million since 2023 to a political action committee controlled by Nevada State Treasurer Zach Conine, who is running for attorney general against state Senate Majority Leader Nicole Cannizzaro.

This amount is more than twice the $1.2 million that Conine received from individual donors to his personal campaign account over the same period.

Following the receipt of funds from Berns, Conine’s PAC consequently donated more than $1.8 million to a newly formed campaign entity named Safe and Strong Nevada PAC, which launched a website and video advertisement attacking Cannizzaro.

Both Cannizzaro and Conine are Democrats on the June 9 primary ballot. They have embraced similar campaign themes as fighters who will oppose President Donald Trump—a consistent message in a year when the Democratic base is energized.

Neither candidate has made cryptocurrencies a focal point of their campaigns. Yet Berns’s donations make him by far the largest donor to Conine’s campaign organizations. Miller, the political science professor, said the extent of Berns’s contributions reflected a broader trend.

"It is not typical for a campaign to be almost entirely supported by one wealthy megadonor."

"All constraints on political donations have significantly diminished over the past couple of decades, and the amount of money needed to influence a Nevada primary election is quite attainable for many wealthy individuals," he said. "Campaigns across the country frequently have one or two super PACs involved, funded by just one or a few individuals. It is not usual for a campaign to be almost entirely propped up by one wealthy megadonor, but it does occur sometimes."

A Dream Denied

While Berns did not respond to a request for comment on his involvement in the race, he shares a complicated history with Cannizzaro. Five years ago, she helped shut down his plan for building a "smart city" near Reno, as his company described.

Berns, formerly a California plaintiff’s lawyer who secured massive settlements against the banking industry, was also an early investor in the Ether token, a major competitor to bitcoin.

His growing fortune enabled him to acquire waterfront properties in luxurious destinations like Lake Tahoe, where he bought and sold a $47.5 million mansion, and Turks and Caicos, where he recently listed a beachfront property for $35 million that was once featured on the Netflix reality dating show "Too Hot to Handle."

He also established a company named Blockchains, which in 2018 bought 67,000 acres of land in Storey County in northern Nevada, near the Tesla "Gigafactory," for $170 million.

Storey County has flexible development rules, yet not flexible enough for Berns. Instead, he and his company aimed to build a fully blockchain-based city that would function independently from the county.

“I want to create a place where we can rethink things. Where we can democratize democracy,” Berns told the BBC.

Berns gained support from a crucial backer: then-Nevada Gov. Steve Sisolak, a Democrat who endorsed the idea in his 2021 State of the State address.

Opponents noted Berns had contributed tens of thousands of dollars to Sisolak and suspected an attempt to sidestep regular democratic governance. They also expressed concerns about more ordinary issues such as lost tax revenue and water rights.

The idea required approval from the Nevada Legislature. Berns’s push for legislative approval suffered a setback when it was revealed he was being sued by his children’s nanny for allegedly trying to coerce her into a sexual encounter with him and his wife. Berns claimed the plaintiff was a disgruntled former employee, and he settled the case the following year without admitting wrongdoing, according to the Reno Gazette-Journal.

Despite Sisolak’s support, the smart city proposal was ultimately destined to meet its end with a study committee. One of the principal figures in derailing the proposal was Cannizzaro, the state’s first female Senate majority leader.

A lobbyist involved in the discussions confirmed that Cannizzaro played a vital role in stalling the idea. Her campaign also stated that she opposed the concept.

“Like nearly all her legislative colleagues in both parties, Majority Leader Cannizzaro was highly skeptical of the notion of allowing private corporations to run their own governments and siphon off millions of taxpayer dollars,” said Peter Koltak, a campaign spokesperson. “Ultimately, she informed the Governor’s staff and the bill’s proponents that there would be no legislative support for the concept.”

An exasperated Berns eventually withdrew his company from the study process, leading his team to declare there was no reason to further explore the concept.

Berns Shifts Gears

Though Berns has greatly increased his wealth through cryptocurrency investments, he is not a prominent name in the industry. Many of the wealthiest crypto companies and venture capital firms have supported a national super PAC called Fairshake, which has hundreds of millions of dollars to be spent on federal elections. Berns has not contributed to that effort, federal campaign finance records show.

Instead, he has directed his political contributions towards Nevada, supporting candidates from both parties. Berns gave $5,000 to Republican Gov. Joseph Lombardo in 2024, and $250,000 to the Democratic Party of Washoe County in 2022, campaign finance records indicate. Additionally, he donated $5,000 to Cannizzaro in 2020 before the smart city proposal was terminated in the legislature.

Despite the opposition the smart city proposal received, Berns has not become a particularly contentious donor.

“In Las Vegas, not a month goes by without an artist’s rendering of a proposed resort, arena, or other project emerging,” said Miller. “Some materialize, and many do not. I do not anticipate that the smart city proposal left a lasting impression on many Nevada voters.”

While neither Conine nor Berns responded to inquiries regarding the latter’s contributions, Conine has hinted at a favorable stance toward crypto.

During the smart city debate, Conine advocated for the idea of permitting government entities to accept stablecoin payments. In 2024, he participated in an event sponsored by a crypto industry trade association.

Cannizzaro, on the other hand, does not appear to have taken substantial public stances regarding the crypto industry. Since the start of 2024, she has raised $2.2 million between her personal campaign account and a PAC she controls. Her campaign stated she will not be swayed by Berns’s financial involvement.

“Leader Cannizzaro has consistently defended Nevada from major corporations and wealthy special interests, and an irresponsible tech billionaire channeling his millions into this race certainly will not deter her,” said Koltak, the spokesperson.