Crypto company CEO stole $5M from his own company, erased 194 records and resigned

CEO and co-founder of cryptocurrency data company Bitquery has been accused of stealing more than $5 million from the business before deleting nearly 200 financial records and abruptly resigning. Dionysios “Dean” Karakitsos, 57, allegedly transferred company funds to accounts linked to himself and his associates over several years, according to a lawsuit filed by Bitquery in Manhattan Supreme Court. The lawsuit further claims Karakitsos, who left the company in October 2025, allegedly deleted 194 expense and bill records from its accounting system.Bitquery lawsuit alleges CEO transferred company funds to personal accountsAccording to the lawsuit, the alleged scheme began around 2022, when investors put about $8 million into Bitquery. The company tracks cryptocurrency prices, transactions and flows. Karakitsos allegedly had sole control over Bitquery’s financial accounts. The lawsuit claims he used that access to transfer money to several entities operated by him and his associates, including an entity based in the UK.Bitquery also accused its former CEO of giving investors a misleading picture of the company’s financial position. Karakitsos allegedly told investors that the company had between $5 million and $6 million in the bank.However, according to the lawsuit, Bitquery generated about $2 million in revenue and had roughly similar operating expenses in 2024 and 2025.Former Bitquery CEO allegedly deleted 194 financial records before resigningThe lawsuit claims Karakitsos tried to hide the alleged transfers shortly before resigning in October 2025. He allegedly deleted 194 expense entries and bill records from Bitquery’s QuickBooks accounting system. The company claims those records showed transfers of money into his personal accounts. He is also accused of changing other records to conceal the transactions.Bitquery further alleges that Karakitsos continues to hold banking credentials belonging to the company and has refused to return them.“The harm to Bitquery is substantial, ongoing, and aggravated by each day that Karakitsos retains exclusive control over the Company’s accounts,” the filing stated.Bitquery filed the lawsuit in June and is seeking the return of at least $5 million that it claims was misappropriated. The company is also seeking additional damages, banking credentials, a full accounting of the funds and property allegedly purchased using company money. Bitquery has since appointed co-founder Aleksey Studnev as its CEO.Karakitsos has denied the allegations. “I strongly disagree with the allegations and intend to respond through the legal process,” he said.Get the latest technology news and updates. Download the TOI App.