EddieJayonCrypto
9 Sep 24
Steven Nerayoff has filed a $100 million lawsuit against law firm Covington & Burling, alleging mishandling of his defense in a 2019 extortion case initiated by the US government. The suit claims that Covington's senior counsel advised Nerayoff against submitting crucial evidence and abruptly ceased...
Steven Nerayoff has filed a $100 million lawsuit against law firm Covington & Burling, alleging mishandling of his defense in a 2019 extortion case initiated by the US government. The suit claims that Covington's senior counsel advised Nerayoff against submitting crucial evidence and abruptly ceased representing him, leading to additional legal fees. Nerayoff's lawyer is seeking compensation for the expenses and lost business opportunities. Covington plans to vigorously defend itself, denying the allegations as "without merit."
Nerayoff was arrested and charged in 2019 with allegedly threatening to sabotage a crypto startup unless he received a substantial ransom payment in cryptocurrency. He hired Covington for his defense but claims he was advised against submitting crucial evidence in court. In June 2022, he provided the same evidence to prosecutors, leading to the dismissal of the charges in 2023. The lawsuit contends that Nerayoff's case could have been handled better and much earlier if Covington's attorney had submitted the exculpatory evidence in 2019.
A Covington spokesperson has denied the allegations, asserting that the firm plans to "vigorously" defend itself against Nerayoff's lawsuit. While the spokesperson stated that the claims are "without merit," attorney Vinegrad declined to comment on the matter. Earlier this year, Nerayoff sued the US government for "maliciously" investigating and prosecuting him for nearly four years. He argued that the government arrested him despite knowing the charges were "factually and legally baseless."