Steven Nerayoff, a former adviser to the Ethereum network, has filed a $100 million lawsuit against the law firm Covington & Burling, alleging severe mishandling of his defense in a 2019 extortion case. The lawsuit, submitted on September 6 to the New York County Supreme Court, accuses Covington attorney Alan Vinegrad of advising Nerayoff to withhold crucial video evidence and emails that could have demonstrated his innocence to U.S. prosecutors.
Nerayoff and his associate, Michael Hlady, were arrested on September 18, 2019, accused of extorting a cryptocurrency startup. Nerayoff asserts that he provided the videos and additional evidence to prosecutors in June 2022, and the charges were dropped by May 2023. According to Nerayoff, the case could have been prevented entirely if his lawyers had shared this evidence earlier.
Covington has denied the allegations, calling the lawsuit “without merit” and vowing a vigorous defense. Nerayoff claims the firm abandoned him after his indictment in January 2020, forcing him to spend over $1 million on legal fees while his business opportunities evaporated.
In addition to this lawsuit, Nerayoff has filed multiple legal actions in 2024. These include a $9.6 billion lawsuit against the U.S. government over the investigation’s alleged misconduct and a $10 million defamation suit against social media figure Tyler Fayard, known as “Boring Sleuth,” for allegedly tarnishing his reputation online.
Nerayoff’s current attorney, Romeo Salta, seeks damages “not less than” $100 million, arguing the indictment crippled Nerayoff’s ability to operate in the crypto industry, resulting in significant financial losses.
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