TLDR
- Federal judge dismissed most claims against Chainalysis while permitting a fiduciary duty allegation to advance.
- The remaining claim focuses on a controversial 2020 press release characterizing $3.3 billion in Celsius holdings as audited.
- Fifteen claims were thrown outātwelve permanently and three with the option to amend by October 20.
- The ruling found sufficient evidence that Chainalysis knowingly participated in disseminating misleading information.
- Internal Celsius calculations initially showed $1.18 billion before methodology changes inflated the figure to $3.3 billion.
A federal judge has determined that Chainalysis must continue defending against a portion of litigation connected to the bankruptcy of Celsius Network in 2022. The legal battle revolves around a December 2020 press statement that characterized $3.3 billion in company holdings as independently audited.
U.S. District Judge Margaret Garnett delivered her decision on September 29 in Manhattan federal court. While she threw out fifteen separate allegations against the blockchain analytics firm, she permitted one crucial claim to move forward.
The remaining allegation contends that Chainalysis actively assisted in breaching fiduciary obligations. The Blockchain Recovery Investment Consortium, representing Celsius’s bankruptcy estate, is advancing this charge.
The Path to a $3.3 Billion Valuation
The controversy originated in November 2020. Timothy Cradle, a Celsius executive, utilized Chainalysis’s Reactor software and arrived at approximately $1.18 billion in managed assets.
The legal filing states that company leadership subsequently modified their calculation approach. They incorporated the market value of Celsius’s proprietary CEL token reserves into the final tally.
This adjustment inflated the number to approximately $3.3 billion. On December 9, 2020, Celsius publicly disclosed what it termed a completed audit verifying that specific amount.
The announcement positioned the engagement as Celsius’s inaugural independent asset confirmation. A Chainalysis representative was directly quoted affirming the company’s role in validating the figures’ precision.
The current legal action contends this characterization was deceptive. It alleges that Chainalysis sanctioned the term “audit” on five separate occasions before publication.
The Court’s Determination
Judge Garnett noted the complaint went beyond suggesting Chainalysis was merely passive. She determined it sufficiently alleged the firm possessed awareness and provided substantial assistance.
This dual element, she concluded, warranted allowing the aiding-and-abetting allegation to survive the motion to dismiss. The decision doesn’t determine the veracity of the accusations.
Twelve additional claims received dismissal with prejudice, preventing their refiling. Many failed because consumer-based claims couldn’t be legally transferred to the litigation administrator.
Three additional allegations were dismissed without prejudice. The bankruptcy estate may attempt to remedy these deficiencies through an amended filing by October 20.
Chainalysis contended that Celsius participated in the alleged misconduct and shouldn’t recover damages. Garnett acknowledged this argument’s potential validity but said it couldn’t be determined at this preliminary phase.
Chainalysis declined to provide comment regarding the court’s decision.
Additional Celsius Recovery Initiatives Underway
The Chainalysis litigation represents just one component of broader efforts to recoup funds for Celsius creditors. The estate initiated this action in March 2025.
In parallel proceedings, Celsius is seeking approximately 6,360 BTC from BitMEX-related entities stemming from 2020 liquidation events. That cryptocurrency amount was worth nearly $495 million when the legal claim was submitted.
Creditor distributions have progressed independently. Celsius executed a third disbursement totaling $220.6 million in August 2025.
That distribution elevated reported recoveries to 64.9% of qualifying claims at that juncture. Former Celsius co-founders have encountered separate legal proceedings this year.
Shlomi Daniel Leon and Hanoch Goldstein consented to pay $6.5 million collectively to resolve Federal Trade Commission allegations. Former chief executive Alex Mashinsky is currently serving a 12-year federal prison term following his guilty plea to fraud-related charges.
The upcoming critical date in the Chainalysis matter is October 20. The bankruptcy estate must either revise its three dismissed allegations or notify the court it won’t pursue them further.
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