Steven Nerayoff, an early adviser to the Ethereum network, is suing law firm Covington & Burling for $100 million, claiming it mishandled his defense in a 2019 extortion case in the United States. 

In a Sept. 6 lawsuit filed in the New York County Supreme Court, Nerayoff alleged that Covington lawyer Alan Vinegrad advised him not to turn over videos of “negotiations with the alleged victims” and emails and other messages to US prosecutors, which he claimed showed his dealings were “entirely lawful.” 

On Sept. 18, 2019, Nerayoff and Michael Hlady — an associate of his blockchain consulting firm Alchemist — were arrested and charged , with prosecutors alleging they extorted a cryptocurrency startup .

Nerayoff said he gave prosecutors the videos and other evidence in June 2022. Less than a year later, in May 2023, the charges were dismissed.

In the suit, Nerayoff claimed the whole case could have been “staved off” had his Covington attorneys “presented the clearly exculpatory evidence to the prosecutors in the fall of 2019.” 

A Covington spokesperson denied the allegations and told Cointelegraph the “lawsuit lacks merit, and we will defend against it vigorously.”

Nerayoff’s legal complaint alleges Covington withdrew from representing him after he was indicted on Jan. 10, 2020, and he then spent the next three years and over $1 million in legal fees. 

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Nerayoff’s current attorney, Romeo Salta, is seeking an amount “to be determined at trial but not less than” $100 million because,  as a result of the indictment , he was unable to “engage in business” and “lost other contracts in the crypto space.”

Nerayoff has filed several other lawsuits in 2024. In April, he launched a $9.6 billion lawsuit against the US government over the alleged malicious way he was investigated and prosecuted during the extortion case. 

On July 22, he also launched a $10 million defamation lawsuit against Tyler Fayard, known on social media as “Boring Sleuth,” for allegedly defaming him online.

Source: Steven Nerayoff

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