The price of Pi Network is collapsing... and a billion-dollar fraud lawsuit is causing a crisis of trust

The losses of the Pi Network currency deepened during trading on December 8, following the revelation of new details from a lawsuit filed against the project's developers, leading to significant pressure on the currency's price. Pi Coin fell to $0.2200, the lowest level since November 16, and a decrease of over 23% from the peak on November 28.

The crisis stems from a lawsuit filed by Haro Moin in October, accusing the founders of Pi — Chengdiao Fan and Nikolas Kokkalis — along with Pi Community Company and SocialChain, of executing a "massive fraud" involving undisclosed transfers and secret sales amounting to 2 billion Pi coins, in addition to intentionally delaying the launch of the mainnet. The lawsuit claims that the company deceived more than 60 million users into believing that the network was decentralized, while it was — according to the allegations — entirely centralized and managed through three verifying nodes controlled by the company. No official response has been issued by the team so far.

These accusations are not new to the project; the CEO of Bybit described Pi as a "fraud" back in February, justifying the refusal to list it.