Former Bitquery CEO accused of diverting over $5 million and erasing records
A Manhattan court lawsuit alleges that Dionysios “Dean” Karakitsos siphoned more than $5 million from the crypto-data firm Bitquery and deleted hundreds of expense entries before resigning.
Bitquery Inc., a provider of cryptocurrency analytics, has sued its former chief executive Dionysios “Dean” Karakitsos, alleging he misappropriated more than $5 million from the company over several years. According to the Manhattan Supreme Court filing, Karakitsos used his sole control over the firm’s accounts to move money into multiple entities, including one based in the United Kingdom, while falsely telling investors the business held millions in cash.
The suit says he erased 194 expense and bill entries from Bitquery’s QuickBooks system in an effort to hide the transfers just days before his October 2025 resignation. Bitquery asserts that Karakitsos continues to hold the firm’s banking credentials and is demanding the return of the funds, the assets bought with them, and compensation for legal costs. The company has appointed co-founder Aleksey Studnev as its new chief executive and emphasized that the alleged misconduct forced the legal action. Karakitsos has denied the accusations and indicated he will contest them in court.
Why it matters
The case highlights potential governance risks in fast-growing crypto-tech firms and could affect investor confidence.
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