$PI Naked scam! Regarding the 17 million migrated users of Pi Network, there are currently no publicly available audit reports or concrete evidence to provide an exact figure for the proportion of "pump-and-dump" schemes. However, based on project mechanisms and third-party data, there is a very high likelihood of numerous "zombie users" and "multiple accounts," which essentially also constitute a form of "pump-and-dump."

1. Doubts About Data Authenticity: Official Data vs. On-Chain Data

Official claim: The project claims to have tens of millions of users, with approximately 17 million completing KYC verification or migration.

On-chain reality: According to third-party data from blockchain explorers like ExplorePi, the number of active mainnet wallets is only 9.11 million, which is a huge gap compared to the official claimed migration number.

Key suspicion: The difference (about 8 million) is very likely made up of inactive "zombie users" or multiple accounts created to inflate numbers. These accounts, although having completed KYC, do not truly participate in the ecosystem and are considered invalid data.

2. Mechanism Flaws: KYC Cannot Fully Prevent "Multiple Accounts"

Limitations of KYC: While Pi Network mandates KYC (identity verification) to prevent cheating, the verification process is carried out by community members, and there are vulnerabilities.

Variants of "pump-and-dump": In the absence of strict regulation and third-party audits, project founders or early participants could exploit loopholes by controlling multiple identities (such as family members, friends, or purchased ID information) to create numerous accounts, forming an effective "pump-and-dump."

3. Conclusion: Actual Active Users May Be Much Lower Than 17 Million

Overall, among these 17 million migrated users, the proportion of real, active users with only a single account may not be high. Most data is likely diluted by "zombie accounts" and "multiple accounts." Therefore, while direct proof of project founders engaging in "pump-and-dump" schemes is lacking, suspicions of data inflation are very strong.

Pi Network currently does have suspicions of "deliberate bottlenecking," but a more accurate description is "serious delays in technological progress." Although the official claims to have tens of millions of users, the mainnet migration (mapping) progress is extremely slow, and ecosystem development has almost stalled, resulting in many user assets being "locked" in the testnet for a long time without liquidity.

1. Why does it feel like "deliberate bottlenecking"?

Slow mainnet migration: As of December 2025, only about 17 million users worldwide have completed mainnet mapping. Compared to the tens of millions of registered users, the migration rate is very low. Although the official claims to be accelerating, the actual progress is far below expectations, preventing many users from transferring their Pi coins to mainnet wallets.

KYC review bottleneck: Identity verification (KYC) is a prerequisite for mapping, but the review system is inefficient, causing many users to get stuck at the "waiting for review" stage and unable to proceed. Although AI review has been introduced, backlog issues remain severe.

Ecosystem construction shell: The project has been running for years, but the mainnet remains in a "closed" or "test" state, lacking practical application scenarios. Even if users successfully map, they cannot trade on mainstream exchanges or use their assets for real consumption, making it difficult to realize value.

2. Is this a scam?

From a legal perspective, Pi Network has not yet been officially classified as a "pyramid scheme" or "fraud," but it resembles a "high-risk air coin project." The core issues are:

Empty promises: The official has long promoted an inflated price like "GCV (Global Consensus Value) of $314," but on-chain liquidity is extremely low, lacking real value support.

Traffic harvesting: The project has gained a large user base through "mobile mining" and earns advertising revenue, but has delayed fulfilling the promise of "opening the mainnet," leading to suspicions that it is exploiting users to maintain hype.

3. What should you do with your Pi coins?

Beware of scams: Due to difficulties in mapping, many scams have emerged offering "proxy mapping" and "high-price buybacks." Never disclose your mnemonic phrase or private keys to anyone; the official will never ask for these via email or private messages.

Lower expectations: Do not invest real money to buy Pi coins, nor expect to get rich overnight. Currently, Pi coins on unofficial channels (like IOU) are priced very low (around $0.6–$0.8), with extremely poor liquidity, and could vanish at any time.

Summary: Pi Network is currently in a "semi-dead" state. While not a strict scam, it is very difficult to cash out, and the risks are high. It is recommended to stay cautious, avoid investing too much effort, and not put in funds.

Pi Network is indeed facing multiple legal lawsuits, mainly in California and Vietnam. These lawsuits directly accuse the project team of "fraud" and "market manipulation," causing significant impacts on the project's reputation and token price.

1. California: Multi-Million Dollar Securities Fraud Lawsuit

This is currently the biggest legal threat to Pi Network, directly accusing the founders and company of securities fraud.

Core allegations:

Secret Sale: Plaintiffs allege Pi Network secretly sold about 2 billion Pi tokens, causing the token price to plummet from the alleged $307.49 to $1.67.

Asset Seizure: Plaintiffs claim that 5,137 Pi tokens in their accounts were transferred without authorization, and remaining tokens cannot be mapped to the mainnet.

Centralized Control: The lawsuit alleges that the project only runs three validation nodes, maintaining centralized control over the network, violating decentralization promises.

Latest developments:

The lawsuit was filed on October 24, 2025, in the Northern District of California, with damages claimed up to $10 million.

The case is still in the preliminary stage. The Pi Core Team has not issued an official statement, but the community has strongly questioned the price data ($307.49) cited in the lawsuit, considering it a mistaken comparison based on third-party IOU markets.

2. Vietnam: Community Scam Class Action

While this lawsuit does not directly target Pi Network's official, it exposes chaos and risks in community management.