Seven major Chinese financial associations have simultaneously issued warnings about serious risks associated with digital assets. Notably, in a joint statement published last weekend, these organizations specifically named Pi Network, calling it a "virtual currency with no real value," sparking considerable debate in the international community.
According to information published on the website of the China Futures Contract , the rapid popularity of concepts such as cryptocurrencies, stablecoins, real asset Tokenize (RWA), and the "free Mining " model has created opportunities for many groups to exploit for illegal Capital activities. Criminal organizations are alleged to use the name of cryptocurrencies to create a cover for multi-level marketing schemes, investment scams, and the illegal transfer of profits through virtual assets to conceal the flow of money.
A joint statement from seven associations – including the China Internet Finance Association, the Banking Association, the Securities Association, the Asset Management Association, Futures Contract, Listed Enterprises, and Payments – emphasized that these models are seriously harming people's financial security and distorting and destabilizing the market. The classification of Pi Network as a "worthless cryptocurrency" has drawn particular attention, as the project once attracted tens of millions of users globally, including many Vietnamese.
In addition to facing criticism from China, Pi Network is also embroiled in a notable lawsuit in the United States. A California investor has filed a lawsuit in federal court, alleging that Pi Network leaders operated a fraudulent scheme for years, causing him losses of over $2 million.
Pi Network, which emerged in 2019, was promoted as a project allowing anyone to "mine Pi" for free through a mobile application by checking in daily. In Vietnam, the movement to participate in this project spread strongly from 2020 to 2022, creating expectations that Pi would become a tradable asset like Bitcoin or other major cryptocurrencies. However, after nearly six years of operation, the project has only just begun its "open network" phase, allowing users to transfer Pi outside the internal ecosystem. The prolonged delays, lack of transparency regarding its real value, and the fact that it has not been listed on any major exchange have made Pi Network a controversial topic.
