Core Points - SocialChain Inc., the company behind Pi Network, is facing a $10 million lawsuit for allegedly orchestrating a fraud scheme involving unauthorized token transfers and secret sales of 2 billion Pi tokens, which led to a significant drop in the token's price from $307.49 to $1.67 [1][4] - The lawsuit was filed on October 24 in the US District Court for the Northern District of California, targeting Pi Network founders Chengdiao Fan and Nicolas Kokkalis, along with SocialChain Inc. [2] - The plaintiff, Harro Moen Moen, claims that 5,137 Pi tokens were transferred from his verified wallet without authorization and that his remaining 1,403 tokens were not migrated to the Pi Network Mainnet [3] - The complaint alleges that despite marketing Pi Network as decentralized, the company maintained centralized control by operating only three validator nodes, and it also raises concerns about Pi being an unregistered security [5] Community Response - The Pi Core Team has not publicly addressed the lawsuit, but the Pi community has challenged several claims made by the plaintiff, suggesting that unauthorized token transfers could be due to compromised login credentials or phishing attempts, rather than wrongdoing by the team [6]