Bitquery has filed a lawsuit in Manhattan Supreme Court accusing former CEO Dionysios "Dean" Karakitsos of stealing over $5 million, deleting 194 QuickBooks records to hide the transfers, and refusing to return banking credentials. Karakitsos, who resigned in October 2025 and is replaced by Aleksey Studnev, denies the allegations.
Karakitsos alleged embezzlement scheme
- ▪The alleged embezzlement scheme began around 2022, when investors put approximately $8 million into Bitquery.
- ▪Dionysios "Dean" Karakitsos, the 57-year-old former CEO and co-founder of Bitquery, is accused of transferring over $5 million in company funds to personal accounts and entities linked to himself and his associates.
Investor misrepresentation claims
- ▪Dionysios "Dean" Karakitsos allegedly told investors that Bitquery had between $5 million and $6 million in the bank, despite the company generating only about $2 million in revenue with similar operating expenses in 2024 and 2025.
Evidence deletion attempts
- ▪Dionysios "Dean" Karakitsos allegedly deleted 194 expense entries and bill records from Bitquery's QuickBooks accounting system shortly before resigning in October 2025 to conceal transfers into his personal accounts.
Bitquery damages lawsuit
- ▪Dionysios "Dean" Karakitsos has denied the allegations, stating he strongly disagrees and intends to respond through the legal process.
- ▪Bitquery filed a lawsuit against Dionysios "Dean" Karakitsos in Manhattan Supreme Court in June 2026, seeking the return of at least $5 million, additional damages, and a full accounting of the funds.
Post-resignation banking control dispute
- ▪Bitquery alleges that Dionysios "Dean" Karakitsos continues to hold the company's banking credentials and has refused to return them.
New CEO appointment
- ▪Bitquery appointed co-founder Aleksey Studnev as its new CEO following the departure of Dionysios "Dean" Karakitsos.
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