TLDR
- Federal judge dismissed most allegations against Chainalysis while permitting a fiduciary duty claim to advance.
- The remaining allegation focuses on a controversial 2020 Celsius announcement characterizing $3.3 billion in holdings as audited.
- Fifteen claims were thrown out, with twelve permanently barred and three eligible for revision by October 20.
- The judge determined the lawsuit adequately claimed Chainalysis was aware the statements were inaccurate and assisted in their dissemination.
- Initial calculations by Celsius showed approximately $1.18 billion before a methodology shift produced the $3.3 billion amount.
A federal judge has determined that Chainalysis must continue defending against a portion of a lawsuit connected to the 2022 failure of Celsius Network. The legal dispute revolves around a 2020 public statement that characterized $3.3 billion in Celsius holdings as having undergone an audit.
Judge Margaret Garnett delivered her decision on September 29 through the U.S. District Court for the Southern District of New York. While she threw out 15 allegations against Chainalysis, she permitted a single claim to advance.
The remaining allegation charges Chainalysis with assisting in the violation of fiduciary responsibilities. The Blockchain Recovery Investment Consortium is bringing this action on behalf of the defunct lender’s bankruptcy estate.
The Path to the $3.3 Billion Announcement
The controversy originates in November 2020. Timothy Cradle, an executive at Celsius, utilized Chainalysis software known as Reactor and determined assets under management totaled approximately $1.18 billion.
The legal filing states that Celsius management subsequently modified their calculation approach. They incorporated the market value of Celsius’s proprietary CEL token reserves into the final number.
This adjustment elevated the amount to approximately $3.3 billion. On December 9, 2020, Celsius issued a statement announcing what it termed a finalized audit validating that precise figure.
The announcement characterized the process as Celsius’s inaugural external asset confirmation. A Chainalysis representative was quoted stating the firm assisted in verifying the figures’ precision.
The pending lawsuit contends that characterization was deceptive. It asserts Chainalysis authorized the term “audit” on five occasions prior to the statement’s publication.
The Judge’s Ruling
Judge Garnett noted the lawsuit went beyond alleging Chainalysis merely remained passive. She stated it claimed the company possessed awareness and provided substantial assistance.
This pairing, she determined, was sufficient to allow the aiding-and-abetting allegation to survive the motion to dismiss. The decision does not establish whether the accusations are accurate.
Twelve additional claims were dismissed with prejudice, preventing their resubmission. Multiple claims failed because the underlying consumer allegations could not be legally transferred to the litigation administrator.
Three additional claims were dismissed without prejudice. The estate has the opportunity to correct them through an amended filing due October 20.
Chainalysis additionally contended that Celsius itself participated in the alleged misconduct and should be prevented from obtaining damages. Garnett acknowledged that position had validity but could not be determined at this procedural juncture.
Chainalysis stated it could not provide commentary on the decision.
Additional Celsius Asset Recovery Initiatives
The Chainalysis litigation represents one component of a broader initiative to reclaim funds for Celsius creditors. The estate initiated the lawsuit in March 2025.
In a separate matter, Celsius is seeking approximately 6,360 BTC from BitMEX-related entities regarding 2020 liquidation events. That quantity was valued near $495 million at the time of filing.
Creditor distributions have progressed independently. Celsius executed a third distribution totaling $220.6 million in August 2025.
That distribution elevated reported recoveries to 64.9% of qualifying claims at that point. Former Celsius co-founders have additionally encountered separate legal proceedings this year.
Shlomi Daniel Leon and Hanoch Goldstein consented to pay a combined $6.5 million to resolve FTC allegations. Former CEO Alex Mashinsky is currently serving a 12-year prison term following his guilty plea to fraud charges.
The upcoming deadline in the Chainalysis matter is October 20. The estate must either revise its three dismissed allegations or inform the court it will not continue pursuing them.
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