SocialChain Inc., the parent company of Pi Network, is currently embroiled in a $10 million lawsuit after an investor accused them of masterminding a fraud scheme of epic proportions.
Apparently, the complaint details unauthorized token transfers, the “secretive” sale of 2 billion Pi tokens, and deliberate delays in network migration, all of which allegedly caused a catastrophic collapse in the token’s price. Because nothing screams “trustworthy” like a secretive crypto company, right?
Federal Securities Fraud Lawsuit Blasts Pi Network Leadership
In a move that’s as subtle as a sledgehammer, the lawsuit was filed on October 24 in the US District Court for the Northern District of California, under the watchful eye of Judge Nathanael M. Cousins. The lawsuit goes after Pi Network’s founders, Chengdiao Fan and Nicolas Kokkalis, and SocialChain Inc. because apparently, “who’s running the show” is as big of a mystery as “where did all that money go?”
🚨 Is a lawsuit really going to be filed against #PiNetwork?
I don’t know if this is true or false, but I do know that its value will soon decrease, and people’s trust in it will also diminish. @PiCoreTeam needs to respond now.
– The Times of PiNetwork (@PiNetwork24X7) December 7, 2025
The plaintiff, Harro Moen Moen from Arizona, has a story that might make you want to grab some popcorn. He claims that he was the victim of a multi-year scheme, which caused him to lose a good chunk of change. How much? Well, a whopping $10 million in damages. Naturally, he’s not pleased about it.
Moen also claims that 5,137 of his Pi tokens were transferred from his verified wallet to an unknown address-without his say-so-on April 10, 2024. But wait, it gets better. He alleges that his remaining 1,403 tokens didn’t even get migrated to the Pi Network Mainnet. And who can blame him for being upset? It’s like ordering a pizza and having it delivered with half the toppings missing. Not cool.
Where on Earth did $307.49 come from?
It seems like a lot of the plaintiff’s case revolves around trading IOUs. And, let’s be real, the Pi Core Team has been very clear in advising against relying on IOU values. But hey, why let facts get in the way of a good lawsuit, right?
“Where did ‘307.49’ even come from? Even the IOU value was never that high. And, by the way, Open Market Value ≠ IOU Value. The lawsuit is built on a false equivalence,” a Reddit user pointed out, probably shaking their head.
The entire situation has stirred up a heated debate in the Pi community, with some people defending the network and others feeling duped. Meanwhile, the Pi Core Team remains mum. As for how this will all end? Well, that’s up to the court. We’ll just grab some more popcorn and see how the chips fall. 🍿
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2025-12-08 14:37