Judge lets one Celsius claim against Chainalysis proceed
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A US federal judge dismissed 15 claims that Celsius Network’s litigation administrator filed against blockchain analytics firm Chainalysis, but let one survive: an accusation that the company helped Celsius insiders breach their fiduciary duties. US District Judge Margaret Garnett denied Chainalysis’ motion to toss that aiding-and-abetting claim in a ruling issued Tuesday, according to Cointelegraph.
The case traces back to a Celsius press release from December 9, 2020 that promoted roughly $3.3 billion in assets as the result of an “audit” performed with Chainalysis Reactor. The plaintiffs argue that framing was misleading from the start — and that Chainalysis knew it.
How the $3.3 billion ‘audit’ figure was built
According to the complaint as summarized by the court, the number did not arrive in one step. A Celsius executive first calculated about $1.18 billion in assets using Chainalysis Reactor, the analytics platform used to trace on-chain activity. Changes to the methodology then pushed the figure up to roughly $3.3 billion.
The December 2020 release presented the result as an “audit” confirming that asset total, based on transactions, total deposits and total withdrawals since Celsius launched the service in 2018. The plaintiffs allege Chainalysis helped write, edit and approve that release and knew the phrases “audit” and “independent verification” were false or materially misleading.
Those allegations have not been proven. Chainalysis tried to have the entire complaint dismissed, and told Bitcoin World it was unable to comment. Celsius’ litigation administrator did not respond before publication.
The suit is being brought by the Blockchain Recovery Investment Consortium, or BRIC, which serves as litigation administrator and recovery manager for the Celsius estate and is pursuing claims on behalf of Celsius and certain former customers.
Two reports, slightly different counts
The two accounts of the ruling differ in how they tally the outcome. Cointelegraph reports that Judge Garnett dismissed 12 claims with prejudice, preventing the plaintiffs from amending them in this case, alongside the dismissal of three consumer-protection claims without prejudice.
PANews, citing Cointelegraph, describes the same ruling as 15 claims dismissed in total, with the three consumer-protection claims open to amendment by October 20. Both outlets agree on the core point: a single aiding-and-abetting claim remains live, and the allegation that Chainalysis participated in promoting misleading statements has not been confirmed by the court.
Why it matters
Celsius filed for bankruptcy in July 2022 during the crypto market crash, after freezing withdrawals a month earlier and leaving customers unable to access about $4.7 billion in assets. The Chainalysis lawsuit is one part of the estate’s broader effort to recover funds for creditors, so the survival of any claim matters to people still waiting on distributions.
The ruling also tests how far liability reaches when an analytics vendor’s tooling is used to market an asset figure. Chainalysis is not accused of running Celsius — it is accused of knowing the promotional language was wrong and helping to spread it. Allowing that theory past a motion to dismiss gives the plaintiffs a path to discovery against a third-party service provider, which is a meaningfully different posture than a case confined to company insiders.
What to watch
The immediate date is October 20, when the plaintiffs must either file amended consumer-protection claims or tell the court they will drop them. How they use that window — and whether the aiding-and-abetting claim advances toward discovery — will shape the next phase of the estate’s recovery litigation.
Frequently Asked Questions
What is the Chainalysis lawsuit about?
It centers on a December 9, 2020 Celsius press release that described about $3.3 billion in assets as an “audit” based on Chainalysis Reactor data. The plaintiffs say Chainalysis helped draft, edit and approve that release while knowing the “audit” and “independent verification” language was false or misleading.
How many claims against Chainalysis were dismissed?
US District Judge Margaret Garnett dismissed 15 claims. Twelve were dismissed with prejudice, meaning they cannot be amended in this case, and three consumer-protection claims were dismissed without prejudice.
Who is suing Chainalysis?
The Blockchain Recovery Investment Consortium, or BRIC, is pursuing the case as litigation administrator and recovery manager for the Celsius estate, acting on behalf of Celsius and certain former customers.
What happens next in the case?
The plaintiffs have until October 20 to amend the three consumer-protection claims or tell the court they will not do so. The aiding-and-abetting claim continues regardless.
Sources: Cointelegraph, PANews
