- There are signs of a pyramid scheme
- Before, local police had filed a case because PI tokens were accepted at a conference from the administration
- Citizens are asked to take the situation seriously and weigh the risks carefully
- In the meantime, the platform continues to operate
A few days ago it was reported online that the latest GCV International from Pi Network was of interest to police. This data was confirmed by the Vietnamese Department of Cybersecurity and Hi-Tech Crime Prevention.
What is Pi Network?”
The project came to market back in 2019. The platform is in extremely high demand in Asia, particularly in Vietnam and India. The service offers the ability to “mine” PI tokens directly from a cell phone.</nbsp;
The permanent audience of the project is variously estimated at up to 47 million users. The platform has been repeatedly criticized for its similarity to a pyramid scheme. The community’s negative reaction only intensified after the PI listing scandal on Huobi.</nbsp;
It turned out to be an outright lie by the Pi Network administration.. Despite this, the project continues to work. However, its activities are now under threat.
Investigation by authorities
Lieutenant General Le Xuan Minh, deputy head of the department, said that Pi Network’s business model “raises suspicions.”. He also confirmed the presence of signs of a pyramid scheme in the activities of the organization. In his words, the fact that unregulated business brings “such a huge profit” requires increased attention.</nbsp;
The formal reason for the inspection was the fact that the GCV could pay for the ticket in PI tokens instead of fiat. The police launched an investigation for violations of financial laws, but the entire list of claims to the platform is not limited to that.</nbsp;
Pi Network commented on the situation, noting that it stands for the transparent and as quickly as possible removal of any wrongdoing. The platform continues to operate as normal.</nbsp;
While recalling, cryptocurrency is illegal in Vietnam. Despite this the level of acceptance of digital assets and, unfortunately, the number of crimes on this ground here is extremely high.</nbsp;Thus, for example, we previously reported that two people in Vietnam were sentenced to life imprisonment for stealing $1.5 million in cryptocurrency. Read more at the link.
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