- The claim for damages came after a warning from Chinavirtual assets and stablecoins are not legal means of payment – Pi Coin was used as an example.
- An investor from Arizona previously had the SocialChain Inc., the operating company of Pi-Network, and two of its founders were reported for fraud.
Pi Network is charged with securities fraud under US federal law. This resulted in a ten million dollar lawsuit for damages. On October 24, Harro Moen of Arizona filed a lawsuit in the U.S. District Court for the Northern District of California against SocialChain Inc. and its two founders, Nicolas Kokkalis and Chengdiao Fan, as well as other parties.
The lawsuit states presentedthat Moen had been cheated out of the value of the Pi tokens that he had “mined” over the network since April 2020.
Moen claims that over $2 million worth of unauthorized transfers from Pi took place and that delays or errors in migrating tokens to the Pi Network mainnet made them illiquid. The lawsuit further states that the defendants misled investors about the decentralization and distribution of the Pi tokens.
The lawsuit further alleges that they conducted undisclosed token sales and transferred approximately two billion Pi coins.
The central allegation is that Pi Network and its leadership violated US securities laws and investor protections by marketing and operating the token system in a manner that benefited insiders at the expense of ordinary investors.
China’s role
Following Beijing’s crackdown on cryptocurrencies, seven Chinese industry associations, including the National Internet Finance Association of China and the China Banking Association, have issued a warning against RWA tokenization. Specifically, the Pi network was denounced as an example of a token that could be used in pyramid schemes and to launder the proceeds of crime.
Market performance and upgrades
Fact: Pi Network uses AI in its fast-track KYC system to speed up verification, reduce manual checks by half, and help users stuck in backlogs complete the process on the blockchain faster.
As CNF reported, 17.5 million customers have completed KYC, 15.7 million have already migrated to the mainnet, and three million are in the queue waiting for full verification.
Pi Network is also preparing for the planned unlock of 190 million Pi tokens this month. The native Pi token has been around for the past week 4% and more in the last 24 hours 0,96 % decreased so that its current price is at 0,2210 $ and the market capitalization is approximately $1.84 billion.
No Comments