A blockchain data firm has accused its co-founder and former CEO, Dionysios “Dean” Karakitsos, of allegedly stealing more than $5 million from the company and then deleting financial records to cover his tracks. The lawsuit, filed in Manhattan Supreme Court by Bitquery Inc., claims Karakitsos, 57, siphoned company money into personal accounts over several years while also misrepresenting the firm's financial health to investors.
According to the lawsuit, Karakitsos's alleged scheme began around 2022, coinciding with an $8 million investment round. He is accused of telling investors that Bitquery held between $5 million and $6 million in its accounts, when in reality, the company's revenue and operating costs were closer to $2 million in 2024 and 2025. Bitquery claims Karakitsos had sole control over the company's finances and transferred funds to multiple entities he operated, including one based in the United Kingdom.
The company alleges that days before his resignation in October 2025, Karakitsos attempted to erase evidence of the misappropriation. The filing claims he deleted 194 expense entries and bill records from Bitquery's QuickBooks system and altered other records to hide the transfers.
Bitquery stated that Karakitsos retains the company's banking credentials and refuses to relinquish them, causing substantial and ongoing harm. The firm has appointed co-founder Aleksey Studnev as the new CEO.
Bitquery is seeking the return of at least $5 million, along with additional damages for legal expenses and Karakitsos's alleged bad faith actions. The company also demands the handover of all property purchased with misappropriated funds, a full accounting of the money, and all banking credentials.
Company attorney Robert Lynch stated that "the unlawful actions of the prior CEO, Mr. Karakitsos, have forced the company to take this step." Karakitsos has dismissed the allegations, stating, “I strongly disagree with the allegations and intend to respond through the legal process.” Karakitsos reportedly went on to lead a prediction market platform called Assymetrix, according to his LinkedIn profile.