Pi expert Dr Altcoin claimed the Pi Network lawsuit is full of a lack of evidence and misrepresentation of key facts about the project. He said this amid a new lawsuit filed by an investor in the U.S. courts.
Expert Says Pi Network Lawsuit is Misleading
In an X post, Dr. Altcoin criticized the U.S. lawsuit against the Pi team, calling it “flawed on multiple levels.” He believes that many of the claims made by the plaintiffs misunderstand the market history of Pi.
Claims include that the price of Pi had plunged from $307.49 to $1.67. Dr. Altcoin clarified that Pi had never been more than $3 on any exchange.
The suit also alleges the team transferred 5,137 Pi tokens from the complainant’s wallet without his consent. He said this claim is very weak since there is no proof of any internal access or misconduct.
A lawsuit against the Pi Network was filed on October 24 within the U.S. District Court in California. It claimed the Network’s developer, SocialChain, mismanaged tokens and made false statements as to how the project works.
Similarly, plaintiff Harro Moen reported that more than 5,000 Pi tokens were transferred without his permission from his verified wallet this April 2024. He also reported delays in transferring 1,403 tokens to the project’s Mainnet.
The complaint also alleges that SocialChain secretly sold 2 billion Pi tokens and maintained control over the network through three validator nodes in a centralized manner. The plaintiff is demanding compensation up to $10 million.
This is not the first controversy with the project. Former executive McPhilip also accused the group of mismanaging $20 million in funds, along with removing him without due process.
In another class-action lawsuit filed against Pi Network in Vietnam, 33 local pioneers claimed they were deceived into parting with their money by false claims about Pi’s expected value on exchanges.
Pi Coin Under Pressure Despite Positive Updates
Following these allegations, Pi’s price fell by 4.35% in the past 24 hours.
The project will also unlock about 82 million Pi tokens over the next 30 days at a rate of around 6 million tokens per day. Analysts say the unlocking increases the possibility of sell-side pressure.
The challenges come at a time when Pi Coin was officially registered under the European Union’s MiCA framework. This clears the path for the token to go into major European markets for the very first time.
The Pi team also made important changes to simplify verification processes. The app has also started using AI tools to help reduce delays in the KYC process.