Bitquery, a cryptocurrency data provider, has filed a lawsuit against its co-founder Dionysios “Dean” Karakitsos, alleging he stole over $5 million from the company and deleted 194 financial records before resigning in October 2025. The lawsuit was filed in Manhattan Supreme Court in June 2026.
According to the complaint, Karakitsos controlled the company’s accounts and allegedly transferred funds to accounts linked to himself and associates. The company claims that before his resignation, he deleted 194 expense and bill records from QuickBooks, which contained evidence of the transfers. Other entries were reportedly altered to conceal the transactions.
Bitquery is seeking at least $5 million in damages, additional compensation, and access to its banking credentials, which Karakitsos has not returned. The company has since appointed co-founder Aleksey Studnev as its new CEO.
The allegations reportedly date back to around 2022, after investors put approximately $8 million into Bitquery. Karakitsos allegedly told investors the company held between $5 million and $6 million in bank accounts, but Bitquery claims its actual revenue was near $2 million during 2024 and 2025, with operating costs close to that figure.
Karakitsos has denied the allegations and plans to defend himself in court. “I strongly disagree with the allegations and intend to respond through the legal process,” he said. The case remains a civil lawsuit, and no criminal charges have been filed.
The dispute highlights concerns about financial controls in startups where a single executive has broad access to company funds and records.