Pi Network Faces $10 Million Fraud Lawsuit, While Community Pushes Back Against Allegations

Jakarta, Pintu News – Pi Network and SocialChain Inc. have recently been in the spotlight after an American investor filed a $10 million lawsuit. The lawsuit alleges fraud in token management and centralized control, impacting global users.

Details of the Shocking Lawsuit

An investor from Arizona, Harro Moen, filed a lawsuit on October 24, 2025 in the Northern District Court of California, United States. Moen claimed that there was an unauthorized transfer of 5,137 Pi tokens from his wallet in April 2024, as well as a delay in the migration of another 1,403 tokens to Pi Network’s main network.

Read also: Pi Network Price Drops Today: Pi Coin Technicals Headed Down to $0.1919!

It suffered losses of more than $2 million, calculated based on the peak value of Pi tokens in 2022. According to the lawsuit, SocialChain and its executives conducted a secret sale of approximately 2 billion Pi tokens and maintained centralized control through three validator nodes.

This action was cited as the cause of the token value dropping from $307.49 to around $1.67, affecting millions of users in 190 countries.

Continuing Criticism and Concerns

Pi Network has long been the subject of criticism and concerns related to its transparency and control. Financial authorities in China, including the China Futures Association and the China Internet Finance Association, have issued warnings that virtual assets like Pi Coin are not legal currencies and could be used for illegal fundraising or pyramid schemes.

This case adds legal, regulatory, and reputational risk to Pi Network. The outcome of the lawsuit in the United States, along with continued scrutiny from Chinese authorities, will determine the future of this network and how regulators handle community-driven crypto projects.

Read also: Solana Price Forecast: Bullish Momentum Builds as Derivatives Surge, Eyes Set on $160 Breakout

Community Reaction and Defense

Although Pi’s core team has yet to provide a public response to the lawsuit, the Pi community has been quick to respond to some of the plaintiff’s claims.

Many community members argue that the unauthorized token transfer could have been caused by compromised login credentials or a phishing attempt, and the incident does not prove any wrongdoing by the team.

Overall, this case highlights the challenges faced by community-based crypto projects in maintaining transparency and security. The outcome of this lawsuit will not only affect Pi Network, but could also set a legal precedent for similar cases in the future.

FAQ

Who filed the lawsuit against Pi Network and SocialChain Inc.?

Harro Moen, an investor from Arizona, United States, filed the lawsuit.

What is the amount of damages claimed by the plaintiff?

The plaintiff claimed damages of more than $2 million.

What is the basis for the plaintiff’s calculation of damages?

Losses are calculated based on the peak value of the Pi token in 2022.

That’s the latest information about crypto. Follow us on Google News to get the latest crypto news about crypto projects and blockchain technology. Also, learn crypto from scratch with complete discussion through Pintu Academy and stay up-to-date with the latest crypto market such as bitcoin price today, xrp coin price today, dogecoin and other crypto asset prices through Pintu Market.

Enjoy an easy and secure crypto trading experience by downloading Pintu crypto app via Google Play Store or App Store now. Also, get a web trading experience with various advanced trading tools such as pro charting, various types of order types, and portfolio tracker only at Pintu Pro.

*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Trading crypto carries high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying and selling bitcoin and other crypto asset investments are the responsibility of the reader.

Reference:

• BeInCrypto. Pi Network Securities Fraud Lawsuit. Accessed on December 9, 2025
• Coinpedia. Pi Network News: US Investor Files $10M Lawsuit Over Alleged Token Fraud. Accessed on December 9, 2025