Dean Karakitsos accused of $5 million theft from blockchain firm Bitquery

A lawsuit filed in Manhattan’s Supreme Court alleges that former chief executive officer and co‑founder Dean Karakitsos stole more than $5 million from Bitquery Inc., a company that tracks cryptocurrency transactions. The complaint says Karakitsos diverted company funds to personal accounts, misled investors about the firm’s earnings, and deleted 194 expense records before abruptly resigning in 2025.

The case underscores governance weaknesses in many crypto‑focused startups, where limited oversight can allow executives broad control over treasury functions. Regulators are watching such allegations closely, and the lawsuit could spur calls for tighter financial reporting and audit requirements in the blockchain sector.