Investors accuse Cere Network of $100 million fraud and token-dump scheme in lawsuit
Investors filed a $100 million lawsuit against Cere Network, alleging fraud, racketeering, and a token dump following its 2021 ICO.Summary
Investors have filed a $100 million lawsuit in U.S. federal court against Cere Network, its founder Fred Jin, and other insiders, alleging fraud, racketeering, and a massive token dump after the project's 2021 Initial Coin Offering (ICO). The plaintiffs claim they were misled about the project's business prospects, token lockups, and customer adoption. Cere raised nearly $50 million in token sales, promising insiders' tokens would be locked up to protect public buyers. However, the complaint alleges that Jin and other insiders immediately sold tens of millions of dollars worth of tokens post-launch, causing the CERE token price to collapse by over 99% from its peak. Plaintiffs are seeking $25 million in compensatory damages and $75 million in punitive damages, arguing that token sale proceeds were used to enrich insiders instead of building the promised decentralized cloud data platform.
(Source：CoinDesk)