Early Ethereum network adviser Steven Nerayoff is suing law firm Covington & Burling for $100 million, alleging it mishandled his defense in a 2019 extortion case.
Steven Nerayoff's allegations
Nerayoff claims that in September 2019, Covington lawyer Alan Vinegrad advised him not to turn over videos of “negotiations with the alleged victims” and emails to US prosecutors. According to Nerayoff, these materials showed his dealings were entirely lawful. As a result, in September the same year, Nerayoff and his associate, Michael Hlady, were arrested and charged with extortion of a cryptocurrency startup. Although Nerayoff provided the evidence to prosecutors in June 2022 and the charges were dismissed less than a year later, he argues that the case could have been prevented if his Covington attorneys had presented the exculpatory evidence in fall 2019.
Covington & Burling's response
A Covington spokesperson denied Nerayoff's allegations, stating that the lawsuit lacks merit and they will defend against it vigorously. Nerayoff's lawsuit also claims that Covington ceased representing him after he was indicted in January 2020, leading to over $1 million in legal expenses over the next three years.
Nerayoff's subsequent lawsuits
Steven Nerayoff has filed several other lawsuits this year. In April, he launched a $9.6 billion lawsuit against the US government over alleged malicious conduct during the investigation and prosecution. Additionally, on July 22, he filed a $10 million defamation lawsuit against Tyler Fayard, known as "Boring Sleuth" on social media, for allegedly defaming him online.
Steven Nerayoff's lawsuits continue to draw attention to the extortion case, and the upcoming legal proceedings may shed more light on his allegations against Covington & Burling.
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