Techstars, a blockchain accelerator company, has officially ended its partnership with the firm Alchemist due to the arrest of its founder Steven Nerayoff due to an alleged cryptocurrency extortion scam, according to a report by Yahoo Finance.

Nerayoff's firm was built to help blockchain entrepreneurs succeeded. However, he was arrested last month for allegedly threatening to destroy another startup that issued cryptocurrency tokens as loyalty rewards.

Techstars plans to continue working with other firms and mentors through other accelerator programs, according to the report.