Chainalysis Sued Over Alleged Role in Falsified Crypto Audit

US District Judge Margaret Garnett has made a ruling in a lawsuit between Chainalysis and Celsius Network's litigation administrator. The judge dismissed most claims brought against Chainalysis, but allowed one to proceed.

The surviving claim alleges that Chainalysis helped Celsius insiders breach their fiduciary duties by knowing false statements were contained in a 2020 press release and helping disseminate them. This claim is part of the estate's effort to recover funds for creditors after Celsius filed for bankruptcy in July 2022 with $4.7 billion in assets frozen.

The lawsuit centers on a 'audit' conducted by Chainalysis for Celsius in 2020, which publicized the results as an audit. The complaint alleges that Chainalysis helped draft and edit this release, knowing it contained false or misleading statements about the work being an independent verification.