Legal representatives of blockchain analytics firm Chainalysis will appear in the New York Supreme Court on October 16 regarding a defamation lawsuit filed in January 2024, Cointelegraph reported. The judge will consider a recently filed motion to dismiss by the Chainalysis legal team.
Chainalysis is being sued by Exceptional Media Ltd., the company behind the YieldNodes blockchain investment project. Exceptional Media claims that Chainalysis falsely labeled its YieldNodes project as an âinvestment scamâ and is seeking at least $650 million in damages, alleging malicious intent.
According to court documents dated January 22, 2024, Chainalysis notified Exceptional Media in the third week of January 2023 that YieldNodes was classified as a scam and said that this classification might be lifted or changed to "high risk," but it would take several months.
Chainalysisâ legal team has filed multiple motions to dismiss, saying that Exceptional Media and YieldNodes have failed to prove that the YieldNodes project is not a scam and have failed to refute Chainalysisâ allegations. Chainalysis argues that the complaint fails to allege falsity.
The Chainalysis report pointed out that YieldNodes is a typical investment scam that promises users super high returns, usually based on algorithmic "no loss" trading strategies. Chainalysis also believes that the New York Supreme Court has no jurisdiction over this civil commercial dispute.
Cointelegraph reached out to Chainalysis, but the company declined to comment on the ongoing litigation.