A blockchain entrepreneur allegedly siphoned more than $5 million from his own company and erased 194 expense records before abruptly stepping down.
Dionysios “Dean” Karakitsos, 57, stands accused of ripping off Bitquery Inc., which tracks cryptocurrency values and flows, according to lawsuit filed in Manhattan Supreme Court.
Karakitsos, who co-founded the company and served as its CEO, director and treasurer until 2025, allegedly spent several years funneling company money into his personal accounts.
He also lied to investors by exaggerating how much money the company was raking in to draw them in and keep them hooked, the suit claimed.
His alleged scheme began around 2022, when investors poured about $8 million into Bitquery.
In the following years, Karakitsos told investors the company’s account had millions sitting in the bank — between $5 million and $6 million — when in reality, it only earned about $2 million in revenue and had similar operating costs in 2024 and 2025.
Karakitsos had sole control over the company’s accounts — allegedly transferring the money to multiple entities operated by him and his associates, including one based in the UK, the suit noted.
Days before he resigned in October 2025, Karakitsos desperately tried to cover his tracks, the filing claimed.
The filing alleges he deleted 194 expense entries and bill records from Bitquery’s QuickBooks accounting system that revealed transfers into his personal accounts. He’s also accused of changing records to conceal the transfers.
Bitquery claimed that Karakitsos still holds all the company’s banking credentials and refuses to hand them over.
“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.
According to his LinkedIn, Karakitsos went on to run a prediction market platform called Assymetrix.
Bitquery, which filed the suit in June, is demanding the return of at least $5 million he allegedly stole.
The company said it is seeking additional damages to cover legal expenses and because Karakitsos acted in “bad faith.”
The company, which appointed co-founder Aleksey Studnev as CEO, also demands he hand over all the property bought with the misappropriated funds, a full report accounting for the money and all credentials for Biquery’s banking that he still holds.
“Bitquery is a strong company with a new CEO and excellent potential,” company attorney Robert Lynch told The Post.
“The unlawful actions of the prior CEO, Mr. Karakitsos, have forced the company to take this step.”
Karakitsos dismissed the claims: “I strongly disagree with the allegations and intend to respond through the legal process.”
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