Investors are stepping back as a $10 million lawsuit accuses Pi Network of a large-scale fraud scheme, casting a shadow over bullish PI coin price predictions.
Questions of unauthorized transaction, a secret 2 billion Pi token dump, and deliberately delayed network migration have sparked an exodus, with the altcoin down 5%.
According to court filings, plaintiff Harro Moen claims the scheme unfolded over several years and caused significant financial damage. He is seeking $10 million in damages.
Moen credits an April 10, 2024 unauthorized transfer of 5,137 PI tokens from his verified wallet to an unknown address to a scheme to dump over 2 billion PI of user funds.
He further added that the situation was worsened by the failure to migrate his remaining 1,403 tokens to the Pi Network Mainnet, exposing him to heavy unrealised losses.
The complaint also argues that despite marketing Pi Network as decentralized, the defendants allegedly maintained centralized control by operating only three validator nodes.
These accusations threaten to worsen Pi Network’s biggest pain point: adoption. The project already lacks a meaningful use case to sustain long-term growth, and now builders may sideline the layer-1 entirely.
Its liquidity strain may deepen further, with short-term speculative trading amplifying deflationary pressure as token unlocks continue at an average pace of 6.1 million PI per day.
Pi Coin Price Prediction: Is a Recovery Still Possible?
The controversy comes as the PI coin price tests a strong confluence of support with the lower boundary of a 2-month ascending triangle and the 0.5 Fib retracement level.
Momentum indicators show bullishness peeking through. The RSI has bounced from near-oversold levels, typically a bottom marker in corrections.
The MACD also slowly closes in on a golden cross above the signal line, a sign of growing strength.
As a launchpad, this support could set up a breakout to the patterns $0.40 target, an 8-% gain from current prices.
Still, the lawsuit could dent bearish sentiment enough to disrupt the slow growth. A breakdown targets all-time lows, 30% lower at $0.15.
And below that lies a dangerous gap area, with little historical support to cushion downside, which opens the door to a 65% decline to the 1.618 Fib retracement at $0.075.
Bitcoin Hyper: A Layer-2 Attracting Talk For Better Reasons
Those who jumped to Pi Network as an alternative Layer 1 to the leading crypto may be forced to reconsider, as the Bitcoin ecosystem finally addresses its biggest limitation: ecosystem growth.
Bitcoin Hyper ($HYPER) is bridging Bitcoin’s security and stability with Solana’s speed, creating a new Layer-2 network that unlocks scalable and efficient use cases Bitcoin couldn’t support alone.
The project has already raised almost $30 million in presale, and post-launch, even a small share of Bitcoin’s trading volume could push its valuation significantly higher.
Bitcoin Hyper is fixing the slow transactions, high fees, and limited programmability that have capped Bitcoin’s potential – just as the market turns bullish.
To buy HYPER at the presale price and before it lists on exchanges, visit the official Bitcoin Hyper website and connect a crypto wallet such as Best Wallet.
You can swap crypto or use a bank card to make the purchase in seconds.
Visit the Official Website Here
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