Exceptional Media has recently taken legal action against Chainalysis, accusing them of defamation for falsely labeling the Yieldnodes project as a crypto scam.
Specifically, this complaint reveals a reputational and economic loss of over 650 million dollars, resulting from defamatory publications worldwide by the defendants in 2023. Let’s see all the details below.
Summary
Chainalysis: the alleged false identification of Yieldnodes as a crypto scam in 2022
As anticipated, Exceptional Media, through its lawyers, has officially filed a civil complaint against Chainalysis.
The accusation focuses on the defamatory statements that have caused a reputational and economic loss of over 650 million dollars.
Specifically, Chainalysis is accused of falsely labeling the Yieldnodes project as a scam, negatively impacting the entire crypto landscape.
The controversy has deep roots in the publication considered defamatory by Chainalysis on the Reactor website in 2022. Where, according to the accusation, it erroneously reported Yieldnodes as the second largest cryptocurrency scam in the world.
These alleged false statements have had a significant impact on Exceptional Media, damaging its reputation and leading to devastating economic consequences.
The case takes an interesting turn when it is revealed that the defendants, in a global document titled “The 2023 Crypto Crime Report,” have continued to defame Yieldnodes.
It is claimed that, in all relevant phases, the defendants have acted with deceit and recklessness, constantly putting financial profit before the accuracy of their public statements.
The repercussions of false statements are not limited to reputational damage, but have also led to the freezing of cryptocurrency accounts and wallets connected to Yieldnodes and its clients worldwide.
The accusation emphasizes that Exceptional Media has suffered significant damages to its business and reputation, causing irreparable harm to its commercial relationships.
The whole affair raises important questions about the accuracy of information in the world of cryptocurrencies and about the responsibilities of companies in spreading statements that influence the entire global financial community.
Background and details of the accusation
As we have already explained, Exceptional Media, a cryptocurrency company based in Hong Kong, is at the center of a wide-ranging legal controversy.
His masternoding service, Yieldnodes, has indeed attracted the attention of Chainalysis, but not only for financial operations.
The incriminated document, the “2023 Crypto Crime Report,” has three main authors.
Kim Grauer, Director of Research at Chainalysis, is one of the named authors. Eric Jardine, Head of Cybercrime Research, and Erin Leosz, Head of Content Marketing, are both authors of the defamatory 2023 cybercrime report.
Henry Updegrave, Senior Content Marketing Manager at Chainalysis, is also among the authors accused of defamation.
Anyway, beyond the accusations, it will be important during the trial to shed light on the details of the involved companies and the network of responsibility behind the Yieldnodes service.
The story indeed reveals an intricate plot of legal actions, fueled by defamation accusations against Chainalysis, and highlights the importance of a thorough investigation in the worlds of digital finance and cryptocurrencies.
The accusations of defamation and the requests for compensation
Going forward, it can be seen that in the complaint the company revisits the previous paragraphs of the document, highlighting false statements made by the defendants that have labeled it as a fraudulent enterprise.
The defendants, acting with actual malice or negligence, have globally published the “Report on Crypto Crime 2023,” accusing Exceptional Media of financial fraud amounting to over 341 million dollars.
Therefore, it is asserted that the harmful statements mentioned above compromise the integrity and creditworthiness of the plaintiff, severely damaging their business and reputation.
Compensation claims are based on defamation per se, as the statements were presented as facts without any privilege or authorization to third parties.
The issue raises important questions about legal responsibility and the consequences of harmful statements in the context of the crypto sector and digital finance.
