$PI Pi Network Faces Shocking Lawsuit Allegations for Securities Fraud

Source: CryptoNewsNet
Original Title: Pi Network Faces Shocking Lawsuit Allegations
Original Link: Pi Network recently became embroiled in controversy due to a United States federal case filed online on October 24, 2025, naming founders Chengdiao Fan, Nicolas Kokkalis, and related entities. The lawsuit alleges securities fraud, claiming the project is involved in unfair token distribution, asset concealment, excessive centralization, and suspected manipulation through the secret sale of approximately 2 billion Pi coins. Community warnings have escalated these allegations, cautioning that if these claims are substantiated, Pi’s value and community trust will plummet. The warnings also call on the Pi Core Team to take action to prevent further panic within the ecosystem. The case is still in its early stages, and as of December 7, 2025, community panic is intensifying. According to court documents, both parties have agreed to waive service and will officially respond by December 23, so no judgment or factual ruling has been made yet. However, concerns have already sparked controversy across the global Pi community. Supporters claim the case targets third-party IOU markets on certain exchanges, not the Pi Network ecosystem or the upcoming mainnet Pi Coin. However, critics argue these allegations align with long-standing complaints about Pi Network’s lack of transparency, mainnet launch delays, and overly centralized token distribution. These allegations are particularly significant because Pi Network’s 2025 development updates specifically emphasize decentralization and utility growth—issues that will become more serious if not addressed.
Market Sentiment Becomes Fragile
With no conclusive evidence yet to dispel the unresolved allegations, outsiders speculate these claims could trigger a massive sell-off in Pi-sensitive markets, especially in regions with high project adoption. Although there is currently no open mainnet trading for Pi Coin, the community valuation markets and barter systems could also become highly volatile if panic spreads. Community opinion leaders and analysts insist the Pi Core Team must act urgently, arguing that failing to respond will only heighten distrust and spread misinformation. There is a widespread belief that only a public explanation can prevent long-term reputational damage.