Pi Network Faces $8B Scam Allegations—Is This 2025’s Most Audacious Rug Pull?

Pi Network—the ’mobile mining’ project that lured millions with promises of easy crypto—now stares down explosive fraud claims. Investors allege developers cashed out $8 billion while locking users’ tokens indefinitely. Sound familiar?

How it unraveled: After years of ’testnet’ delays, Pi’s mainnet launch triggered mass withdrawal failures. Whispers of insider dumping grew deafening when blockchain sleuths traced billions to shadowy wallets.

The irony? Pi’s cult-like following defended the project for years, dismissing skeptics as ’just not understanding the vision.’ Now those same devotees flood forums with demands for accountability—or their money back.

Wall Street won’t shed tears. Another day, another crypto ’revolution’ that conveniently enriches its founders while leaving bagholders with worthless digital confetti.

• Atlas claims Pi Network could be behind the largest rug pull of 2025 after a 12M token dump halved its value.
• Despite promises of rewards, Pi Network’s years of delays and lack of dApps raise questions about its real utility.
• Concerns over privacy leaks and insider selling push experts to label Pi Network as a potential pump-and-dump scheme.

According to Atlas, an investigator in the crypto sphere, Pi Network could be involved in the biggest rug pull of 2025. The dumping of 12 million Pi tokens in just several hours caused a rapid decline in its value by half. Due to the widespread selling, investors and experts are now suspecting some kind of widespread fraud.

A lot of people downloaded the Pi Network because they expected to make free tokens and gain rewards in the future. After experiencing delays for years, the blockchain launched its mainnet in early 2025. The token price jumped to $1.60 as many people speculated about its success. The increase in value didn’t last long.

🚨 PI Network is the biggest RUG of 2025

Someone just dumped 12M tokens in a few hours, crashing the price by 50%

I spent 32 hours digging into the truth – and what I found shocked me

Here’s how $8B project is scamming holders – and their secret plan 👇🧵 pic.twitter.com/AChCH41kQJ

Pi Network’s Troubling Past

There has been controversy surrounding the project from its very beginning. In 2021, Vietnamese user data worth 17GB was leaked, worrying many about their privacy. In addition, authorities from the region claimed that Pi had collected private data during the process called “free mining.” These concerns were disregarded in the past, though now we are seeing them again.

Although it states that there are 60 million users, the number of people with Pi in their wallets is much lower. The platform uses a multi-layer system of referrals rather than adopting actual technology. Pi is still not offering any practical dApps, open-source code or noticeable transparency, despite years of building the company.

Pi Network’s Price Crash

In May 2025, the price of Pi tokens went up to $1.60, but very soon, it dropped by more than half. After attending Consensus 2025 and pledging exciting changes, Pi Network representatives launched a $100M venture capital fund instead of making the expected updates. While people without special access were patiently watching, those inside were already withdrawing their fortunes.

Dr. Picoin, a prominent member of the community, found that 12 million Pi were moved from an address believed to belong to the Pi Core Team. Dr. Picoin explained that individuals connected with Bybit deliberately raised the token’s price to sell their BTY tokens to ordinary investors. The data from the blockchain demonstrates that large sums of money were sent out of the wallet just before the crash.

Those supporting Pi argue that it migrated from a testnet to a mainnet. The problem is that events are happening too quickly and without proper notice. Many experts such as Atlas, believe that this is what a pump-and-dump scheme looks like.

Many are still concerned because Pi Network is not decentralized, transparent or has real-life uses. If it turns out that there was an insider selloff, it could qualify as a huge slow rug pull this year. Faith in the project has broken down and many are now doubting its honesty.