Scam or Misunderstanding? Pi Network Denies Fraud Allegations

Pi Network, which allows users to mine its PI token via a mobile app, found itself at the center of a scandal after Bybit refused to list its token. CEO Ben Zhou accused the project of fraud, citing 2023 Chinese police documents that allegedly describe Pi Network as a criminal group defrauding elderly individuals. He also urged the project’s developers to publicly refute these claims if they care about their reputation.

Pi Network’s Response to Crypto Scam Allegations

Pi Network initially remained silent on the controversy, while its developer community attempted to defend the project. After several days, the team issued an official statement addressing the accusations. The company clarified that Bybit never submitted a Know Your Business (KYB) request to initiate a partnership. Moreover, the Chinese police investigation referenced by Ben Zhou is completely unrelated to Pi Network—it targets scammers who have no affiliation with the company. 

To be abundantly clear and to avoid any ambiguity, Pi Network is not affiliated with, did not authorize, and did not engage in any activity that is related to the police warning, and Pi Network has not been contacted by any police department in China regarding this incident.

Pi Network also responded to the debate over its reported user base. According to the team, the 60 million figure represents total app downloads, not the number of users with active wallets. Meanwhile, blockchain researchers focus on the number of users who have completed identity verification (KYC) and created a wallet. Pi Network argues that critics are using this discrepancy to cast doubt on the project's legitimacy.

Community Reaction and PI Token Price Action

The crypto community remains split. Some users criticized Ben Zhou for making a hasty statement, pointing out his history of endorsing questionable projects, including the infamous Hamster token. Meanwhile, others supported his stance. Notably, Bybit crypto exchange is well known for its rapid listing policy, which attracts active traders but has also led to the inclusion of several dubious assets on the exchange.

The accusations and Bybit’s decision to reject PI’s listing triggered sharp price swings. Within hours, PI plunged from $1.84 to $0.61. However, speculation about a potential Binance listing fueled a strong rebound, and on February 26, PI surged to a new all-time high of around $3. This price action suggests that, despite the controversy, a significant number of users continue to support the project. 

Pi Network’s detailed response to Bybit CEO’s allegations was an important step in rebuilding trust in the project. While it’s unlikely to change the minds of existing supporters, it could help convince skeptics and attract new users.

Moving forward, Pi Network will remain under close scrutiny, with critics continuing to question its operations. To maintain credibility, the development team will need to prioritize transparency and clear communication.

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