In a statement posted on Twitter, Biles said she had wrestled with her decision to go public with her story since the scandal broke.
"Most of you know me as a happy, giggly, and energetic girl," the 20-year-old reigning Olympic all-around champion wrote.
"But lately I've felt a bit broken and the more I try to shut off the voice in my head, the louder it screams. I am not afraid to tell my story anymore.
Nassar has been accused of sexually assaulting more than 100 young girls including several US Olympians.
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The 54-year-old was sentenced to 60 years in prison in December on child pornography charges.
He could be jailed for life when a further sentencing hearing gets under way in Michigan this week on separate sexual assault charges to which he has pleaded guilty.
- 'Disgusting, abusive' -
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"There are many reasons that I have been reluctant to share my story, but I now know it is not my fault," she wrote. "It is not normal to receive any type of treatment from a trusted team physician and refer to it horrifyingly as the 'special' treatment.
"This behavior is completely unacceptable, disgusting, and abusive, especially coming from someone whom I was TOLD to trust.
"For too long I've asked myself 'Was I too naive? Was it my fault?' I now know the answer to those questions. No. No, it was not my fault. No, I will not and should not carry the guilt that belongs to Larry Nassar, USA Gymnastics and others.
Biles however insisted it would not affect her passion for the sport.
"I love this sport too much and I have never been a quitter. I won't let one man and the others that enabled him, to steal my love and joy," she wrote, demanding an inquiry into how Nassar had been able to continue abusing for so many years.
Biles's team-mate Raisman swiftly took to Twitter in solidarity. "You are incredible Simone. I stand with you," Raisman wrote. "I know we will all get through this together."
USA Gymnastics issued a statement saying the organisation was "absolutely heartbroken, sorry and angry that Simone Biles or any of our athletes have been harmed by the horrific acts of Larry Nassar."
"USA Gymnastics will continue to listen to our athletes and our members in our efforts of creating a culture of empowerment with a relentless focus on athlete safety every single day," it added.
His case was part of a wide-ranging scandal which forced the resignation of USA Gymnastics chief Steve Penny in March last year.
Penny was accused by victims of failing to quickly notify authorities about abuse allegations.
USA Gymnastics adopted a new "safe sport policy" in response to the Nassar scandal that requires "mandatory reporting" of suspicions of sexual abuse.
A civil lawsuit has been filed on behalf of about 100 of Nassar's victims. Their attorney, John Manly, has said the total number could be as high as 160.
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