Exposed! Did Bybit’s CEO Just Call Pi Network a Scam?

The Pi Network scandal has taken a new twist after Bybit co-founder and CEO Ben Zhou publicly accused the project of being a fraudulent scheme targeting the elderly. His claims stem from a Chinese police report published in 2023, which describes Pi Network as a “get rich overnight” scam.

Zhou made his remarks after a self-identified Pi Network technical team account claimed that Bybit had been “rejected” from listing Pi tokens on its exchange. The Pi Network project, which allows users to mine cryptocurrency through a mobile app, has faced skepticism regarding its legitimacy for years.

“Bybit had made no listing request to Pi, and the claim that Pi refused Bybit listing or that we failed some sort of KYB process is completely nonsense,” Zhou stated.

In retaliation, Zhou cited an official warning from the Wuxi Public Security Bureau, which accuses Pi Network of engaging in deceptive practices and preying on the elderly.

Chinese Authorities Warned About Pi Network’s Alleged Fraudulent Model

The 2023 Wuxi Public Security Bureau notice described Pi Network as a dangerous operation that allegedly lured in victims with promises of free mining.

According to the report:

• Scammers target elderly users, convincing them to download a mobile mining app under false pretenses.
• Users are encouraged to recruit others under a multi-level marketing (MLM) model with referral bonuses.
• Personal data is reportedly collected and resold, increasing identity theft risks.
• Some victims have allegedly lost pension funds due to deceptive practices.

“Many criminals use ‘π Coin’ to claim they can mine for free. They expand the victim group by promoting ‘rebates’ for referring new users while stealing personal information,” the police report states.

These accusations have amplified doubts about the project’s credibility, as other major exchanges, including OKX and Bitget, have already listed Pi tokens despite the controversy. Even Binance has polled its community on whether it should list Pi, further fuelling debate over its legitimacy.

Pi Network Strikes Back: Denies Allegations, Defends Mining Model

In an interview with crypto.news, the project co-founders, Dr. Nicolas Kokkalis and Chengdiao Fan, rejected these allegations, insisting that their mining model is built on fairness and security.

According to the Pi Network team:

• The project aims for wide and stable token distribution.
• Users (called Pioneers) undergo identity verification before receiving Pi tokens.
• Security features such as “security circles” and utility-based Pi apps help prevent fraud.

Additionally, the team has repeatedly warned users to stay vigilant against scams.

“Neither Pi Network nor anyone affiliated with us has any connection to illegal or fraudulent activities,” Pi Network stated in an X post ahead of its mainnet launch.

Pi also warned against misleading profit promises, urging users to verify official sources before engaging in transactions.

PI Token Price Collapses Amid Controversy

Amid these allegations, Pi’s token (PI) has nosedived over 50% in the last 24 hours, currently trading at $0.67. The token still maintains a daily trading volume of $1.2 billion, but sentiment around the project is at an all-time low.

Pie Price Crash?

•  Trust Issues: The scam accusations have fueled uncertainty, prompting mass sell-offs.
• Regulatory Risks: With Chinese authorities previously flagging Pi Network, investors fear potential crackdowns.
• Exchange Listings Are Uncertain: While OKX and Bitget have listed PI, Bybit and Binance remain skeptical, limiting its market reach.

The question remains—can Pi Network recover from this reputational hit, or will more exchanges follow Bybit’s lead and distance themselves?

Conclusion: Is Pi Network a Scam or a Misunderstood Project?

Pi Network is once again at the center of controversy as Bybit CEO Ben Zhou reignites fraud allegations, citing a Chinese police report from 2023. While the Pi Network team defends its legitimacy, the MLM accusations, personal data concerns, and regulatory scrutiny continue to weigh heavily on its reputation and market value. The 50% price collapse and mixed exchange listings highlight the divisiveness of the project—while some see it as a promising mobile mining innovation, others view it as a Ponzi-like scheme exploiting users.

With major exchanges like Binance yet to take a firm stance, Pi’s future remains uncertain. Will it manage to clear its name, or is this the beginning of its downfall?

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FAQs

1. Why is Bybit CEO calling Pi Network a scam?

Bybit CEO Ben Zhou cited a 2023 Chinese police report, which described the project as a scam targeting the elderly through deceptive mining claims and multi-level marketing (MLM) recruitment tactics.

2. Has Pi Network responded to these allegations?

Yes. the project co-founders deny all allegations, emphasizing that their mining model is legitimate, ensuring fair token distribution and security measures.

3. Why did Pi Network’s token (PI) drop over 50%?

The price crash was driven by scam allegations and a loss of investor trust, along with regulatory concerns from China. Uncertainty surrounding exchange listings, with Bybit refusing and Binance undecided, also contributed to the decline.

4. Will Binance or other major exchanges list Pi Network?

OKX and Bitget have already listed Pi, but Bybit has rejected it. Binance is currently polling users before making a decision.

Glossary

• MLM (Multi-Level Marketing): A business model where users recruit others to earn rewards, often linked to pyramid schemes.
• Security Circles: Pi Network’s system is designed to verify users and prevent fraudulent activities.
• KYC/KYB (Know Your Customer/Know Your Business): Compliance measures ensuring users are legitimate and not engaged in illicit activities.

References

1. Pi Network Accusations
2. Pi Network Co-Founders Speak on Mainnet & Tokenomics
3. Community Vote Details
4. CoinGecko: Live PI Token Price & Trading Volume