According to Cointelegraph, Steven Nerayoff, an early Ethereum consultant, sued the law firm Covington & Burling for $100 million, accusing it of improper defense in a 2019 US extortion case.
Nerayoff said in the lawsuit filed on September 6 that Covington attorney Alan Vinegrad advised him not to submit evidence such as videos and emails of "negotiations with the alleged victims" to U.S. prosecutors, which showed his actions were "entirely legal."
On September 18, 2019, Nerayoff and Michael Hlady, a partner at blockchain consulting firm Alchemist, were arrested and charged with extorting a cryptocurrency startup.
Nerayoff said he turned over the video and other evidence to prosecutors in June 2022, and the charges were dropped in May 2023.
In the lawsuit, Nerayoff claims the entire case could have been avoided if Covington attorneys had presented apparent exculpatory evidence to prosecutors in the fall of 2019.
A Covington spokesman denied the allegations and said the "lawsuit is without merit and we will defend it vigorously."
Nerayoff's legal complaint alleges Covington withdrew his representation after he was indicted on Jan. 10, 2020, and that he subsequently spent three years and more than $1 million in legal fees.
Nerayoff’s current attorney, Romeo Salta, is seeking damages “to be determined at trial but not less than” $100 million because the prosecution caused him to be unable to “engage in business” and “lose other contracts in the crypto space.”
Nerayoff has filed several other lawsuits this year. In April, he filed a $9.6 billion lawsuit against the government, alleging it conducted a malicious investigation and prosecution in a racketeering case.
On July 22, he also filed a $10 million defamation lawsuit against Tyler Fayard (nicknamed "Boring Sleuth") on social media, accusing him of defaming him online.