Bitquery Sues Former CEO for Alleged Embezzlement of $5.2 Million and Deletion of Financial Records

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Bitquery has filed a lawsuit in the Manhattan Supreme Court in New York against its former CEO, Dionysios "Dean" Karakitsos, alleging he embezzled $5.2 million and deleted financial records. The case raises concerns regarding Countering the Financing of Terrorism (CFT) compliance, as the company claims the alleged fraud impacted liquidity and crypto markets. Karakitsos is accused of falsifying account balances and concealing transfers. He denies the allegations, and co-founder Aleksey Studnev now leads the company.

According to The Times of India, cryptocurrency data company Bitquery has filed a lawsuit in the New York Supreme Court in Manhattan, accusing its former CEO and co-founder, Dionysios "Dean" Karakitsos, of diverting over $5 million to his personal and affiliated accounts since 2022 by exploiting exclusive control over the company’s financial accounts. Prior to his resignation in October 2025, Karakitsos is alleged to have deleted 194 expense and bill entries from the QuickBooks system and altered other financial records to conceal the transfers. He is also accused of misrepresenting the company’s account balance to investors by $5 to $6 million, despite the company’s actual annual revenue being approximately $2 million. Karakitsos denies the allegations, and the company has appointed co-founder Aleksey Studnev as the new CEO.

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