$PI Regarding the 17 million users migrating on Pi Network, the proportion of "pump-and-dump" schemes, there are currently no public audit reports or concrete evidence that can provide an exact figure. However, based on project mechanisms and third-party data, there is a high likelihood of numerous "zombie users" and "multi-accounts," which essentially also constitute a form of "pump-and-dump."

1. Data authenticity is questionable: Official data vs. on-chain data

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

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

Key doubt: The difference (about 8 million) is very likely to be inactive "zombie accounts" or multiple accounts created to inflate numbers. These accounts, although having completed KYC, have not truly participated in the ecosystem and are considered invalid data.

2. Mechanism vulnerabilities: KYC cannot completely prevent "multi-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 loopholes.

Variants of "pump-and-dump": In the absence of strict regulation and third-party audits, project insiders 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 far below 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 of the data could be diluted by "zombie accounts" and "multi-accounts." Therefore, while it cannot be directly proven that the project team is involved in "pump-and-dump," suspicions of data inflation are very high.
Pi Network currently indeed has suspicions of "deliberate bottlenecking," but a more accurate description is "serious lag 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"?

Mainnet migration is extremely slow: As of December 2025, only about 17 million users worldwide have completed mainnet mapping. Compared to the hundreds 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 "testing" 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." Its core issues include:

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

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

3. What should you do with your Pi coins?

Beware of scams: Due to difficulties in mapping, many scams such as "proxy mapping" and "high-price buyback" have emerged. 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 it to make you 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 become worthless at any time.

Summary: Pi Network is currently in a "semi-dead" state. While not strictly a scam, the difficulty of cashing out is very high, and the risks are substantial. It is recommended to stay observant, avoid investing too much effort, and refrain from investing funds.
Pi Network is indeed facing multiple legal lawsuits, mainly in California, USA, 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 the 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, and the Pi Core Team has not issued an official statement. However, 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.