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Steven Nerayoff, an early adviser to the {Ethereum} (ETH) network, has filed a lawsuit against the law firm Covington & Burling, alleging that the firm mishandled his defense in a 2019 extortion case. The lawsuit, initiated on September 6, 2024, in the New York County Supreme Court, seeks $100 million in damages. Nerayoff claims that Covington & Burling, specifically attorney Alan Vinegrad, advised him not to submit crucial evidence, including videos and emails, to U.S. prosecutors. This evidence, according to Nerayoff, would have demonstrated the legality of his actions.
In September 2019, Nerayoff and his associate Michael Hlady were arrested and charged with extorting a cryptocurrency startup. Nerayoff contends that had Covington’s legal team presented this exculpatory evidence to the prosecutors in the fall of 2019, the case against him could have been avoided. He claims that he eventually provided the evidence in June 2022, leading to the dismissal of the charges in May 2023.
According to the lawsuit, Covington & Burling withdrew from Nerayoff’s representation following his indictment on January 10, 2020. As a result, Nerayoff incurred significant legal expenses and faced disruptions to his business activities. His current attorney, Romeo Salta, is seeking damages "to be determined at trial but not less than" $100 million, citing losses in business opportunities and contracts within the {crypto} currency sector due to the indictment.
Covington & Burling has responded to the allegations, labeling the lawsuit as “meritless” and stating their intention to “vigorously” contest the claims. The law firm asserts that they provided adequate legal representation and that the lawsuit lacks substantive grounds.
In addition to this lawsuit, Nerayoff has been involved in several other legal actions this year. In April, he filed a $9.6 billion lawsuit against the government, alleging misconduct in the investigation and prosecution related to the extortion case. In July, he also initiated a $10 million defamation suit against Tyler Fayard, known as “Boring Sleuth,” for alleged online defamation.
