Lawyer: Pi Network or suspected of pyramid scheme crimes

According to an analysis by lawyer Liu Zhengyao of Zhiheng (Shanghai) Law Firm, after Pi Network is launched on the exchange to open the secondary market for trading, its promotion model may constitute a pyramid scheme crime as defined by Chinese criminal law. According to the analysis, Pi Network currently has no physical project support and uses an invitation system to form a hierarchical relationship. Invitees can obtain benefits such as mining acceleration by going offline.
It is worth noting that if the distribution is obtained through the development of offline and sold on the exchange, once the offline level exceeds three levels, the relevant organizers may face up to 5 years in prison and fines; if the amount involved exceeds 2.50 million yuan or the number of developers exceeds 120, the sentence may be extended to more than 5 years.
In addition, in July 2023, the Public Security Bureau of Hengyang City, Hunan Province issued a statement claiming that there are hidden risks in sending coins.