Pi Network has responded to accusations from Bybit CEO Ben Zhou, who labelled the project a scam. The controversy followed a social media post from an X account claiming to represent Pi Network’s unofficial technical team.

Pi Network Rejects Fraud Allegations

On Feb. 20, the account alleged that Pi Network rejected a listing offer from Bybit, suggesting that the exchange was losing market position. Zhou refuted the claim, stating Bybit had not submitted any listing request to Pi Network. He cited a 2023 report from Chinese authorities warning users about a project targeting elderly individuals.

In a statement to Cointelegraph, a Pi Network spokesperson denied any association with Bybit and confirmed that the exchange did not request Know Your Business (KYB) verification. The company clarified that the X account behind the initial claim was unaffiliated with Pi Network.

1. Here is a official police warning of $Pi from Chinese police back in 2023 warning to the public that it’s a scam targeted towards elderly folks https://t.co/LaGJqXSOXR which leaks their personal data and loss of their pension. There are multiple other reports out there… https://t.co/gkEu2wZwfo

— Ben Zhou (@benbybit) February 20, 2025

Pi Network Responds to Chinese Police Warnings

Pi Network also addressed the Chinese police warnings referenced by Zhou. The company asserted that the reports involved fraudulent actors impersonating Pi Network and that no authorities had contacted the company.

The company responded to skepticism about its user numbers, saying the advertised 60 million users referred to engaged application users. It added that over 100 million downloads had been recorded on Google Play. Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Read this Term explorers show 10.8 million users, reflecting those who created wallets on the mainnet after completing Know Your Customer verification.

Bybit Launches $140M Bounty Program After $1.4B Hack

Recently, Bybit lost over $1.4 billion in liquid-staked Ether and MegaETH due to a security breach, according to onchain security analyst ZackXBT. The breach was flagged after a transfer was made from the exchange’s multisignature wallet to a warm wallet just an hour before the breach was identified, as reported by Finance Magnates.

🚨ALERT🚨Our system has detected abnormal activity, including suspicious behavior involving the @Bybit_Official wallet!
Several wallets are exhibiting highly suspicious patterns, and we are actively reaching out to the exchange to warn them. The total affected assets are… pic.twitter.com/iAQqlgU4Rf

— 🚨 Cyvers Alerts 🚨 (@CyversAlerts) February 21, 2025

Zhou confirmed that while the transfer appeared legitimate, it contained malicious code. The attackers altered the smart contract Smart Contract A smart contract is a piece of software that automatically executes a pre-determined set of actions when a certain set of criteria or met. One of the key tenets of smart contracts is their ability to perform credible transactions without third parties and are self-executing, with their conditions written into the lines of code that form themAdditionally, these transactions are both trackable and irreversible. For example, a smart contract could be used to give royalty payouts to a musical artist A smart contract is a piece of software that automatically executes a pre-determined set of actions when a certain set of criteria or met. One of the key tenets of smart contracts is their ability to perform credible transactions without third parties and are self-executing, with their conditions written into the lines of code that form themAdditionally, these transactions are both trackable and irreversible. For example, a smart contract could be used to give royalty payouts to a musical artist Read this Term logic, draining funds from the platform. Bybit has assured users that the investigation is ongoing.

Following the breach, Bybit received significant industry-wide support to help contain the attack and secure user funds. Key players across centralized and decentralized finance rallied to prevent the stolen funds from being moved and to assist in the recovery process.

In response, Bybit launched a $140 million Recovery Bounty Program to incentivize cybersecurity experts to track and retrieve the stolen assets. The exchange's security team quickly locked down the system upon detection of the attack, working with top firms to protect users and manage the aftermath.

Bybit's CEO revealed that 20% of the stolen funds have been mixed, laundered, or sent to platforms that obscure transactions, making them difficult to trace. Despite this, the exchange managed to freeze 3% of the stolen funds, while the remaining 77% remain traceable.

Hackers, allegedly linked to North Korea’s Lazarus Group, stole approximately 500,000 Ether (ETH), worth about $1 billion. Zhou stated that 83% of the stolen Ether was converted to Bitcoin, with 6,954 wallets now holding an average of 1.71 BTC. Bybit also paid over $2.1 million in USDT to bounty hunters involved in the recovery process.