Pi Network has been under heavy pressure lately after a U.S. investor filed a lawsuit, claiming he lost $2 million due to an alleged multi-year fraud scheme tied to the project.
The claims quickly spread across social media. In response, Crypto and AI researcher Dr Altcoin stepped in, saying the lawsuit is based on wrong price data and weak claims.
Pi Network Lawsuit: What the Court Filing Says
According to the filing submitted on October 24, 2025, in the US District Court for the Northern District of California, a US investor from Arizona named Harro Moen has accused SocialChain Inc., Pi Community Company, and Pi Network executives of running a multi-year fraud scheme.
The complaint claims that the Moen suffered losses worth more than $2 million and is now seeking $10 million in damages.
The lawsuit alleges two main issues:
- First, a huge price drop claim where the Pi token fell from $307.49 to near $1, causing massive damage.
- Second, an unauthorized transfer of more than 5,000 Pi from the investor’s wallet.
These claims have quickly drawn attention across the Pi community, raising questions about the seriousness of the case.
Dr Altcoin Calls Lawsuit “Deeply Flawed”
Crypto and AI researcher Dr Altcoin strongly believes the lawsuit is flawed and based on misinformation. He explains that the claim about Pi falling from $307.49 to $1.67 is misleading. As Pi has never traded above $3 on any centralized exchange after its listings.
In defence, he says that the $307.49 price mentioned in the lawsuit is certainly a Pi IOU price, set by third-party exchanges that listed Pi IOUs, not by the Pi Core Team.
Dr Altcoin also reminded users that the Pi team clearly warned the public multiple times not to buy or trade Pi IOUs, stating they were unofficial and risky.
Unauthorized Pi Transfer Claim Lacks Evidence
Coming on to the second claim, which alleges that 5137 Pi tokens were moved from the investor’s wallet without permission.
Dr Altcoin says this claim lacks proof. He further added that the responsibility lies with whoever has access to the investor’s passphrase or recovery data.
Without blockchain proof linking the transfer to Pi Network, Dr Altcoin believes the claim cannot stand in court.
Pi Token Price under Huge Pressure
Since the lawsuit surfaced, Pi’s price has dropped about 8% in recent weeks, now trading close to $0.21.
But the pressure didn’t stop there. Coinpedia news reported that on December 6, a joint notice from seven major financial associations in China recently warned the public about illegal crypto activities and specifically named Pi Coin as a risky asset.
As a result, the sentiment around Pi has grown more cautious, and the project is now facing fears that it may get delisted from listed exchanges in recent months.
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