Pi Network is facing a $10 million lawsuit filed by a U.S. investor, alleging a fraudulent scheme that resulted in $2 million in losses. The lawsuit, submitted on October 24, 2025, in the U.S. District Court for the Northern District of California, claims the Pi token's price plummeted from $307.49 to nearly $1, with 5,137 tokens transferred without authorization. Crypto researcher Dr. Altcoin criticized the lawsuit, stating the $307.49 price was based on third-party IOUs, not official listings, and noted a lack of evidence for the unauthorized transfer claim. Following the lawsuit, Pi's price fell nearly 8%, trading around $0.21. Additionally, on December 6, 2025, seven major Chinese financial associations issued warnings about Pi Coin, increasing regulatory scrutiny on the project.