On Saturday, August 1, 2026, the New York Post reported that Dionysios “Dean” Karakitsos, the former CEO of blockchain data firm Bitquery Inc., is facing a lawsuit accusing him of stealing more than $5 million from the company and destroying financial records to cover up the alleged theft.
According to the complaint filed in Manhattan Supreme Court, Karakitsos, 57, who co-founded Bitquery and led it as CEO, director and treasurer until 2025, is accused of diverting company funds into his personal accounts over a period of several years. The lawsuit also alleges he misled investors by inflating the company’s financial performance to keep them invested.
The suit traces the alleged scheme back to 2022, when Bitquery, which provides data tracking cryptocurrency values and transactions, raised approximately $8 million from investors. Karakitsos allegedly told investors the company had between $5 million and $6 million sitting in its bank account, even though Bitquery’s actual revenue was closer to $2 million, with operating expenses running at similar levels in both 2024 and 2025.
As the company’s sole account holder, Karakitsos allegedly transferred funds to several entities under his control, including one registered in the United Kingdom, according to the filing.
The lawsuit further claims that in the days leading up to his resignation in October 2025, Karakitsos attempted to erase evidence of the alleged scheme. He is accused of deleting 194 expense entries and bill records from the company’s QuickBooks accounting system — records that allegedly documented the transfers to his personal accounts — and altering other financial data to obscure the transactions.
Bitquery also alleges that Karakitsos has refused to relinquish banking credentials for the company’s accounts, which he still controls. The lawsuit states that the company continues to suffer harm each day he retains that access.
Filed in June, the lawsuit seeks the return of at least $5 million, along with additional damages to cover legal costs, citing what the company describes as Karakitsos’ bad-faith conduct. Bitquery is also demanding that Karakitsos surrender any property purchased with the allegedly misappropriated funds, provide a full accounting of the money, and hand over all remaining banking credentials.
Since Karakitsos’ departure, Bitquery has named co-founder Aleksey Studnev as its new chief executive. The company’s attorney, Robert Lynch, said Bitquery remains a “strong company with a new CEO and excellent potential,” adding that Karakitsos’ alleged actions forced the company to pursue legal action.
Karakitsos has denied the allegations, saying he “strongly disagree[s]” with the claims and intends to respond through the legal process.
Public records indicate he has since gone on to lead a prediction market platform called Assymetrix.
Source: New York Post
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