Arizona Investor Files $10M Lawsuit Against Pi Network Executives

TLDR

• A US investor has filed a $10 million lawsuit against Pi Network and its executives for alleged fraud.
• The investor claims unauthorized transfers of 5,137 Pi tokens caused him a loss of over $2 million.
• The lawsuit highlights delays in migrating 1,403 Pi tokens to the Pi Network mainnet, which contributed to the losses.
• The complaint alleges that SocialChain Inc. secretly sold around 2 billion Pi tokens, impacting the network’s value.
• The lawsuit points to the centralized control of the Pi Network, which allegedly contributed to the drop in token value.

A U.S. investor has filed a lawsuit against Pi Network executives and associated companies, claiming a multi-year fraud scheme. Harro Moen, an investor from Arizona, is seeking $10 million in damages. He claims that unauthorized transfers and delays in token migration caused him losses exceeding $2 million. Moen filed the complaint on October 24, 2025, in the U.S. District Court for the Northern District of California.

The lawsuit centers on the unauthorized transfer of 5,137 Pi tokens from Moen’s verified wallet in April 2024. It also addresses the delay in transferring his remaining 1,403 Pi tokens to the Pi Network mainnet. Moen has calculated his losses based on the peak market valuation of Pi tokens from 2022. However, some community members have argued that the value cited in the lawsuit reflects the IOU value, not the open market value.

The investor claims that SocialChain Inc. and its executives secretly sold around 2 billion Pi tokens. He further alleges that these actions, combined with the centralized control of the network through three validator nodes, led to a significant drop in token value. The Pi Network’s token price fell from the IOU figure to around $1.67, according to the complaint. This drop has reportedly impacted millions of Pi Network users across 190 countries.

Centralized Control of Pi Network and Token Economics

The lawsuit highlights concerns about the Pi Network’s centralized control over token issuance and wallet management. Moen claims that the network’s leadership exercises undue control, affecting the fairness of token distribution. The complaint also notes a lack of transparency in the Pi Network’s token economics, which raises questions about the long-term viability of the network.

The complaint further criticizes Pi Network for its closed network transaction limits, which prevent users from transferring tokens freely. This restriction has led to frustrations among users who are unable to access their tokens. The lack of clarity in how the network operates has added to these concerns.

Regulatory Scrutiny from Chinese Authorities

Pi Network is also facing growing regulatory scrutiny, particularly from Chinese authorities. The China Futures Association, along with other financial regulatory bodies, has issued warnings regarding virtual assets like Pi Coin. These authorities argue that tokens like Pi Coin are not legal tender and may be used for illegal fundraising or pyramid schemes.

Regulators have pointed to Pi Coin as an example of a digital asset without real-world use, potentially opening the door for fraudulent activity. This growing regulatory pressure, combined with the ongoing lawsuit in the U.S., adds to the uncertainty surrounding the Pi Network. The outcome of these legal and regulatory challenges will shape the future of Pi Network and its users globally.

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