Watchdog Group Reveals Alleged India Bitcoin Theft
Digital watchdog group The Philox has formally petitioned the Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI) to act immediately against Pi Network in a major effort against claimed cryptocurrency scams.
Filed on March 15, 2025, the complaint charges Pi Network of misleading over 10 million Indian consumers since its 2019 founding.
Pi Coin: a cryptocurrency devoid of actual worth?
The Philox argues that Pi Coin, which promises to pay users for mobile mining, has not given any real value.
Although Fortune India values Pi Coin at $1.64 on March 6, 2025, The Philox claims that the cryptocurrency is still non-tradable on big exchanges like Binance and Coinbase, so users practically cannot turn their holdings into actual money.
Pi Network uses this uncertainty, according to the watchdog group, to draw more naive volunteers.
covert marketing strategies revealed in Tamil Nadu
Complementing their claims, The Philox found in Tamil Nadu in February 2025 a covert marketing operation.
According to the inquiry, 50,000 people were urged—if not under duress—into interacting with Pi Network’s promotional material in exchange for promised benefits.
Users never were paid, though, which exposes what seems to be an exploitation scheme whereby Pi Network gains from ad income while consumers are kept penniless.
No Proof of Blockchain Transactions Notwithstanding Open Network Allegations
Deeper investigation by the Philox on Pi Network’s blockchain activities revealed shockingly little documented transactions as of March 20, 2025.
This immediately runs counter to Pi Network’s assertions of starting their Open Network phase. The monitoring organization feels this points to either:
The network breaks, or
Pi Network is hiding publically accessible vital blockchain data.
A Demand for Government Intervention Against Pi Network
The Philox argues that Pi Coin should be categorized as an unregulated security by means of a formal request to SEBI and RBI, therefore demanding regulatory examination of Pi Network.
Should this be classified as such, the initiative would be subject to rigorous compliance rules, therefore deterring its misleading of Indian investors under the cover of distributed finance.
Potential loss of $50 million for Indian users
Based on their time, effort, and money spent on Pi Coin with no actual financial gain, the watchdog group projects that Indian users could have incurred a possible $50 million financial loss overall.
Many consumers thought the bitcoin would become tradeable, only to be left in flux.
Defense by Pi Network: Stalling Strategies or Regulatory Delays?
Pi Network regularly refutes claims of fraud, stating that problems with regulatory compliance cause delays in reimbursements and exchange listings.
The corporation says that their blockchain is moving toward complete decentralization. The Philox argues, however, that there is a long-standing trend of postponing strategies meant to keep user involvement while avoiding responsibility.
Critical Demand for Regulatory Crackdown
The Philox issues a warning of a full-scale collapse having millions of Indians engaged in Pi Network under the impression they are mining a valuable cryptocurrency.
According to the history of bitcoin frauds, once trust declines, such initiatives usually fail and leave users with useless digital assets.
Global Watchdogs pushed to look at Pi Network
Apart from India, The Philox is urging world financial authorities to examine Pi Network’s activities abroad. Should similar red flags show up, international enforcement steps could follow.
Will SEBI and RBI Act?
Rising proof against Pi Network, SEBI and RBI now find increasing pressure to step in. From manipulated marketing strategies to inflated blockchain claims, the watchdog’s findings draw attention to extreme contradictions in Pi Network’s activities.
Should Pi Network fail to offer credible evidence of validity, this might signal the start of a significant crackdown on dubious bitcoin businesses.
The Indian Crypto Regulation’s Future
As more people in India embrace cryptocurrencies, authorities have to be alert about frauds running behind legal gray lines.
Although the Philox has taken a strong step, SEBI and RBI now have obligation to guard Indian investors against false digital asset ventures. Should Pi Network fail to support its assertions, regulatory action could be unavoidable.
