Steven Nerayoff, who advised Ethereum early on, is suing the law firm Covington & Burling for $100 million. He claims they mishandled his defense in a 2019 extortion case brought by the U.S. government.
Nerayoff filed the lawsuit on September 6 in New York. He says Covington lawyer Alan Vinegrad told him not to give prosecutors videos, emails, and messages about his dealings with the alleged victims. Nerayoff claims these materials showed his actions were legal.
On September 18, 2019, authorities arrested Nerayoff and his associate Michael Hlady. They worked at Nerayoff’s blockchain consulting firm, Alchemist. Prosecutors accused them of extorting a cryptocurrency startup.
Nerayoff gave prosecutors the videos and other evidence in June 2022. Less than a year later, in May 2023, the government dropped the charges. In his lawsuit, Nerayoff argues that if his Covington lawyers had shown prosecutors the evidence in fall 2019, they could have avoided the whole case.
Ethereum Lawsuit Battle: Nerayoff Sues for Millions Amid Legal Disputes
A spokesperson for Covington denied Nerayoff’s claims. They said the lawsuit has no merit and that they will fight it vigorously. Nerayoff says Covington stopped representing him after his January 10, 2020, indictment. He then spent over $1 million on legal fees over the next three years.
Nerayoff’s current lawyer, Romeo Salta, wants at least $100 million in damages. They claim the indictment prevented Nerayoff from doing business and cost him contracts in the crypto world.
Nerayoff has also filed other lawsuits this year. In April, he sued the government for $9.6 billion, claiming they investigated and prosecuted him unfairly in the extortion case. On July 22, he also sued Tyler Fayard for $10 million. Fayard, known online as “Boring Sleuth,” allegedly said harmful things about Nerayoff on social media.
Source: Steven Nerayoff
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