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Blockchain data analyst Chainalysis is facing a defamation lawsuit, filed by Exceptional Media Ltd regarding its YieldNodes investment scheme. Exceptional Media is seeking at least $650 million in damages for Chainalysis’ accusation of YieldNodes being an “investment scam”. Chainalysis has attempted to dismiss the case, arguing that Exceptional Media failed to prove YieldNodes is not a scam. The defamation case will go to court in New York on October 16.

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Chainalysis, a company that analyses blockchain data, is going to court on Oct. 16 in New York over a defamation lawsuit. This action was brought by Exceptional Media Ltd., the company behind the YieldNodes blockchain investment scheme, in January 2024.

Exceptional Media sued Chainalysis after Chainalysis called its YieldNodes scheme an “investment scam”. You can find documents relating to this case on law analysis website, Trellis. The judge will be considering a recent request to dismiss the case from the Chainalysis team.

Exceptional Media is asking for at least $650 million in compensation because it says this bad publicity has damaged its reputation and upset its clients. It also says Chainalysis did it on purpose.

According to a document filed by the court on Jan. 22, 2024, someone from Chainalysis called Exceptional Media in the third week of January 2023. They told the company that YieldNodes had been identified as a scam but that this could be changed to ‘high risk’. However, they pointed out that this would probably take a few months.

Since then, Chainalysis’ legal team has filed several motions to dismiss the case. Chainalysis argues that Exceptional Media and YieldNodes didn’t manage to prove that YieldNodes project isn’t a scam nor dispute any of Chainalysis’ claims.

According to a document filed by Chainalysis’ lawyers, “the complaint fails to allege falsity.” They maintain that YieldNodes is an investment scam offering users may too good to be true returns. Chainalysis claims that because Exceptional Media hasn’t argued specifically how Chainalysis’ analysis isn’t accurate, it is possible that, indeed, YieldNodes is a scam.

Chainalysis believes the case should be dismissed because Exceptional Media failed to explain why YieldNodes isn’t a scam. It also thinks that this type of business disagreement isn’t something the New York Supreme Court should be dealing with.

Chainalysis chose not to comment on the ongoing court case when Cointelegraph reached out to them.

Source: Cointelegraph