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09/09/24
29
Steven Nerayoff Sues Covington & Burling for $100 Million Amid Ethereum Extortion Case Fallout
Steven Nerayoff, a key figure in the early development of the Ethereum network, has filed a lawsuit against the Covington & Burling law firm, seeking $100 million in damages. He accuses the firm of mishandling his defense related to a 2019 extortion case brought by U.S. authorities.
According to his lawsuit, filed on September 6 in New York County Supreme Court, Nerayoff alleges that attorney Alan Vinegrad from Covington advised him against sharing crucial evidence, including videos of negotiations and emails with the purported victims. Nerayoff maintains that this evidence would have clearly demonstrated the lawfulness of his actions. In September 2019, he and his associate, Michael Hlady, were arrested and charged with extorting a cryptocurrency startup.
Nerayoff eventually provided the evidence to prosecutors in June 2022, and the charges were dismissed less than a year later, in May 2023. He contends that had Covington presented this exculpatory evidence to the prosecutors at the outset in 2019, the case could have been avoided entirely.
The lawsuit further claims that Covington ceased representation of Nerayoff following his indictment on January 10, 2020. Subsequently, he has reportedly spent over $1 million in legal expenses over the past three years. His current attorney, Romeo Salta, is requesting no less than $100 million, citing significant business losses and missed contracts in the cryptocurrency sector due to the indictment.
This lawsuit is not Nerayoff’s only legal challenge this year. In April, he filed a $9.6 billion suit against the government, alleging improper investigation and prosecution. Additionally, in July, he initiated a $10 million defamation lawsuit against a social media figure for alleged online defamation.
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