Yong Kuikui, 35, delivered the application letter to the Tonghua Intermediate People's Court in northeast China's Jilin Province through his attorney.
"I always have a backache and I have a poor memory," Yong, who was freed earlier this month said. "Seven years in prison made me suffer from multiple illnesses."
The compensation demand includes 620,709 yuan for violation of personal freedom, 1.5 million yuan for spiritual damage, 500,000 yuan for health and 200,000 yuan for loss of work.
Yong was sentenced to death with a two-year reprieve for murder in July, 2009. His fingerprint correlated with those found on a bag of oranges that were left behind at the scene, according to the police.
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The Jilin Provincial Higher People's Court revoked the rule due to lack of evidence and ordered for a retrial.
The Tonghua court sentenced Yong for a second death penalty in December, 2010 and the ruling was rejected again by the provincial higher people's court in June, 2012.
The Jilin Provincial Higher People's declared Yong innocent in a final ruling on December 4 this year due to lack of evidence, state-run Xinhua news agency reported.