Pi Coin scam in-depth: Ponzi traps and regulatory warnings behind 30 million users

1. Regulatory alarm bells: Pi coin is characterized as illegal fundraising
In February 2025, China's Ministry of Public Security officially issued a warning that Pi Coin has significant risks, suspected of illegal fundraising and fraud, and is essentially a Ponzi scheme. This announcement put an end to a five-year "mobile mining" boom. According to statistics, more than 30 million users around the world have participated in Pi coin "mining", of which Chinese users account for up to 60%. This seemingly low-cost game of wealth is actually an elaborate financial trap.
Second, the model revealed: the digital game under the cloak of blockchain
Pi Coin claims to have been founded by a team of Ph.D. doctors at Stanford University, under the banner of "digital currency that can be participated by all people", claiming that users can "mine" by clicking on the mobile APP every day. However, this "zero threshold" model runs counter to the essence of blockchain technology. The "mining" of Pi coins does not need to contribute computing power, and is only completed by adding digital symbols in the background of the server; The code has not been open source for a long time, and the core technical parameters are ambiguous; The degree of centralization is extremely high, and the user account is completely controlled by the project party. Industry experts point out that this is essentially a "video game points system." The project team used the social fission mechanism to expand rapidly, set up a multi-level recommendation reward system, and encouraged users to develop offline. The "gains" of early participants did not come from market value growth, but from the capital investment of new users, forming a typical Ponzi structure.
Third, risk analysis: technology, law and market triple crisis, Wen Zhang transferred from the public medium: want soft rice hard to eat
Technical level: Pi Coin lacks the underlying technical support of the blockchain, and its claimed "Stellar Consensus Protocol Improved" has not been audited by a third party. The mainnet has not yet been fully decentralized, and the project team has repeatedly modified the economic model, further weakening its value base.
Legal aspects: The Chinese government has explicitly banned virtual currency-related businesses. Pi Coin evades supervision through overseas server operations, but domestic promotion is suspected of being illegal. Public security organs in many places have opened cases to investigate Pi coin-related cases, and some core promoters are facing criminal accountability.
Market level: The value of Pi coin is completely dependent on artificial hype. After the launch of the mainnet, the price of the "fake Pi coin" plummeted, highlighting the risk of market manipulation. Private transactions have given rise to a variety of new types of criminal activity.
Fourth, the mirror of history: the cycle of scams from five-element coins to Pi coins
Pi Coin is not an isolated case, and its mode of operation is highly similar to the historical scams such as Five Element Coin and OneCoin. Under the slogan of "disrupting the financial system", these projects attracted investors through false publicity and tiered rewards, and eventually collapsed. The aging user base of Pi Coin is obvious, and criminals take advantage of this to carry out fraudulent activities.
Rational response: three strategies to stay away from traps
Stop participating immediately: Uninstall the app and exit the relevant community to avoid personal information leakage. There is no legal guarantee for the "digital assets" that have been generated, so do not have the illusion of "monetization".
Be wary of secondary harvesting: The recent "selling Pi coins" and "internal transaction channels" are new fraud methods. The Ministry of Public Security has issued an early warning that any operation requiring transfers and deposits is a scam.
Enhance legal awareness: Participation in illegal financial activities may incur legal liability. Investors should be aware of the relevant laws and regulations to avoid falling for scams.
6. Industry enlightenment and future supervision
The Pi Coin incident has exposed a regulatory blind spot in the virtual currency space. Regulatory authorities need to strengthen cross-border data tracking capabilities and establish a virtual currency risk assessment system. At the same time, investor education should be strengthened, the basic knowledge of blockchain should be popularized through various forms, and investors should be guided to establish a correct investment concept. In the context of the rapid development of blockchain technology, digital assets with real social value must be built on the basis of technological innovation and compliant operations. The collapse of Pi Coin is yet another reminder that any financial game that is divorced from the backing of real value will be a short-lived Ponzi scheme.