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Pi Network has been embroiled in controversy when a United States federal case was leaked online on October 24, 2025, that called founders Chengdiao Fan, Nicolas Kokkalis, and related entities. The suit has alleged the project with securities fraud accusing it of unfair token distribution, withholding of assets, over centralization and alleged manipulation through secret sales of approximately 2 billion Pi coins.
The Times of PiNetwork X post further intensified the allegations by making the warning that in case the allegations are found to be true, the value and the community trust of Pi will drop to dismal levels. The post also challenged the Pi Core Team to take a step out in order to avoid spreading more fears throughout the ecosystem.
Case Still in its Infancy but Community Fear Increases
The lawsuit is still at the preliminary stage as of December 7, 2025. According to court filings, service waivers were agreed to and formal responses will be provided by December 23, so any judgments or factual verdicts are yet to be taken. Nonetheless, doubt has already brought about controversy in the international society of Pi.
According to the advocates, the suit is attacking third-party IOU markets in exchanges like OKX or Bitget, rather than the Pi Network ecosystem, or the mainnet-bound Pi Coin. However, critics feel the allegations are in line with long-standing criticisms of the lack of transparency by Pi Network, the late introduction of the mainnet, and the centralized nature of how tokens are supplied.
These accusations are even more harmful since Pi Network just in its 2025 development updates has focused on the decentralization and utility growth, and thus this information is even more harmful when unaddressed.
Sentiment in the Market Becomes Frail
With no evidence having been substantiated to dispel the unresolved accusations, speculations are still going on that these accusations might lead to mass sell-offs in Pi-sensitive markets, particularly in those areas where the project has a high rate of adoption. Although there is no open mainnet trading of Pi Coin, community-based Global Consensus Value (GCV) markets and barter systems can be volatile in case of fear of spreading.
Strong influencers and analysts throughout the X insist that the Pi Core Team needs to act with urgency and observe that non-response may only serve to heighten distrust and spread misinformation. It is thought that only open explanation will help avoid the long-term reputational harm.
