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

Digital watchdog group The Philox has filed a complaint with the Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI), demanding immediate action against Pi Network for an alleged cryptocurrency scam.

The complaint, filed on March 15, 2025, accuses Pi Network of defrauding over 10 million Indian users since its founding in 2019.

The Philox claims that Pi Coin, which promises to pay users for mobile mining, has not been credited with any actual value.

While Fortune India estimated Pi Coin at $1.64 on March 6, 2025, the watchdog states that the cryptocurrency is still not listed on major exchanges like Binance and Coinbase, meaning users cannot withdraw their holdings into fiat currency.

The startup uses this fact to attract more users, according to The Philox.

In February 2025, in the South Indian state of Tamil Nadu, The Philox discovered a large-scale marketing initiative being carried out for Pi Network.

According to the investigation, 50,000 people were induced—if not forced—into engaging with Pi Network’s promotional materials in exchange for promised benefits. However, users were never paid, suggesting an exploitation scheme where Pi Network benefits from ad revenue while consumers remain destitute.

Further investigation by The Philox into Pi Network’s blockchain activity as of March 20, 2025, shows a striking lack of documented transactions.

This finding directly contradicts Pi Network’s own statements about entering the Open Network phase, which would entail launching a fully decentralized blockchain with open access for network activity.

The monitoring organization suggests this points to either the network malfunctioning or Pi Network deliberately concealing vital blockchain data that should be publicly accessible.

The Philox is urging SEBI and RBI to intervene. They request that Pi Coin be categorized as an unregulated security, bringing it under the regulatory scrutiny of these financial institutions.

If recognized as such, the initiative would be subject to rigorous compliance rules, deterring it from defrauding Indian investors further with its claims of decentralized finance.

According to The Philox’s estimates, based on the time, effort, and money invested by Indian users in Pi Coin without any financial gain, they could have collectively incurred a potential financial loss of $50 million.

Many consumers believed the bitcoin would become tradeable by mid-2022, but it remains in limbo, leaving Indian users in a state of perpetual waiting.

Pi Network has consistently denied accusations of fraud, attributing problems with regulatory compliance in Southeast Asia to delays in exchange listings and users’ payouts.

The company also maintains that their blockchain is undergoing a phased transition towards complete decentralization. However, The Philox argues that this is a tactic for stalling, and there is a pattern of Pi Network promising large-scale initiatives in the near future to keep users engaged while avoiding responsibility.

Now, The Philox is sounding the alarm on what it sees as a potential mass collapse. Millions of Indians are involved with Pi Network, believing they are mining a valuable cryptocurrency, but the watchdog claims this is a bitcoin fraud.

The time sensitivity is critical, as once trust in such initiatives declines, they typically fail, leaving users with useless digital assets.

Apart from its efforts in India, The Philox is calling on global financial watchdogs to examine Pi Network’s activities in other countries. If similar red flags arise, it could lead to international enforcement steps against the startup.

The stellar work done by The Philox in uncovering the alleged scam by Pi Network has brought to light a crucial issue that is pertinent not just in India, but across the globe as the industry advances.