Key facts
- A US federal judge dismissed most claims against Chainalysis in a lawsuit by Celsius Network's litigation administrator.
- One claim alleging Chainalysis aided and abetted Celsius insiders in breaching fiduciary duties will proceed.
- The judge found the complaint sufficiently alleged Chainalysis knew a 2020 Celsius press release contained false statements and helped disseminate them.
- Chainalysis faces an aiding-and-abetting claim over a disputed $3.3 billion Celsius "audit".
- Celsius froze withdrawals in June 2022, leaving customers unable to access about $4.7 billion in assets.
A US federal judge has dismissed the majority of claims brought against blockchain analytics firm Chainalysis by the litigation administrator for the bankrupt crypto lender Celsius Network. However, one claim alleging Chainalysis aided and abetted Celsius insiders in breaching their fiduciary duties will proceed.
US District Judge Margaret Garnett ruled on Tuesday that the complaint sufficiently alleged that Chainalysis was aware that a December 2020 Celsius press release contained false statements and actively assisted in its dissemination. This specific claim survives Chainalysis's motion to dismiss.
In total, Judge Garnett dismissed 12 claims with prejudice, meaning they cannot be refiled. Three consumer-protection claims were dismissed without prejudice, allowing the plaintiffs, the Blockchain Recovery Investment Consortium (BRIC), until October 20 to amend them or abandon them.
Celsius, which froze customer withdrawals in June 2022 amid a broader crypto market crash, subsequently filed for bankruptcy in July 2022. The company's collapse left customers unable to access approximately $4.7 billion in assets. The lawsuit against Chainalysis is part of the estate's efforts to recover funds for creditors.
The core of the surviving claim revolves around a 2020 press release where Celsius, with Chainalysis's alleged assistance, publicized figures as an "audit" of its assets under management. The complaint asserts that Chainalysis helped draft, edit, and approve the release, knowing that statements characterizing the work as an "audit" and "independent verification" were false or misleading. Chainalysis has not commented on the ruling.