The Philox, a digital watchdog group, has filed a complaint with the Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI) against Pi Network, a cryptocurrency that has allegedly misled over 10 million Indian consumers since its founding in 2019. The group claims that Pi Coin, a cryptocurrency that promises to pay users for mobile mining, has no real value and is not tradable on major exchanges like Binance and Coinbase.
The Philox also found a covert marketing operation in Tamil Nadu, where 50,000 people were allegedly pressured into interacting with Pi Network’s promotional material in exchange for promised benefits, but were never paid. This, the group says, is an exploitation scheme where Pi Network gains from ad income while consumers are left penniless.
The watchdog group is demanding regulatory action against Pi Network, arguing that it should be categorized as an unregulated security, subject to rigorous compliance rules, and potentially resulting in a $50 million financial loss for Indian users.
Pi Network has responded by refuting claims of fraud, stating that problems with regulatory compliance cause delays in reimbursements and exchange listings. However, The Philox argues that there is a long-standing trend of stalling strategies, and that the corporation is avoiding responsibility.
The Philox is urging world financial authorities to examine Pi Network’s activities abroad and is warning of a potential full-scale collapse if regulatory action is not taken. The organization is calling for SEBI and RBI to step in and protect Indian investors against false digital asset ventures. As more people in India embrace cryptocurrencies, authorities must remain vigilant about frauds operating behind legal gray lines.