Pi Network Hit With $10 Million Fraud Lawsuit as Community Disputes Key Claims

SocialChain Inc., the company behind Pi Network, is being sued for $10 million by an investor, Harro Moen Moen, in the US District Court for the Northern District of California. The complaint accuses the company and its founders, Chengdiao Fan and Nicolas Kokkalis, of a multi-year fraud scheme, including unauthorized token transfers, secret sales of 2 billion Pi tokens, and deliberate delays in network migration, which allegedly caused the token's value to plummet from a claimed $307.49 to $1.67. The plaintiff also claims Pi Network maintains centralized control despite marketing itself as decentralized. While the Pi Core Team has remained silent, the community disputes several key allegations, suggesting unauthorized transfers resulted from compromised credentials and arguing that the $307.49 valuation is based on false equivalence with IOU trading values, which were never that high. The outcome hinges on the court's evaluation of the evidence regarding the alleged losses and valuation discrepancies.

(Source：BeInCrypto)