Cere Network, a blockchain infrastructure platform, is under legal scrutiny as its co-founder and board face a $100 million lawsuit. The suit alleges fraudulent activities during the 2021 public token launch, including secret sales that harmed investors and misappropriated company funds.
Lawsuit Details
Filed in a San Francisco federal court, the complaint claims that co-founder Fred Jin, his family members, and the board sold over $41 million in Cere Tokens immediately after the public launch, despite promises that tokens would remain locked for months. Investor Vivian Liu, who filed the lawsuit, alleged that the funds were transferred to personal accounts and shell companies and were partly used for high-risk cryptocurrency trades.
The lawsuit also accuses Jin of collaborating with Gotbit, a convicted market maker, using bots to manipulate trading volumes and obscure the alleged fraud. Liu is seeking $100 million in damages, reflecting the scale of the alleged misconduct.
The CERE token has lost nearly all of its value, trading at a fraction of a cent, down 99.9% from its November 2021 peak of $0.47. The legal challenges add further uncertainty for investors and the platform’s future.
Earlier this month, co-founder Kenzi Wang filed a separate lawsuit in Delaware, claiming Jin misappropriated over $58 million of corporate assets. The complaint highlights fraudulent accounting, wash trading, and false financial statements as part of a scheme to conceal the misappropriation.
The lawsuits spotlight serious governance and compliance concerns within Cere Network, emphasizing the risks investors face in emerging crypto markets.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.