Internal PI Network Conflict in 2020: How a Near-Debacle Almost Derailed Its Debut Success

Pi Network’s mainnet launch, featuring a considerable airdrop, marked its debut in the cryptocurrency market. Despite the anticipation, the project faced scrutiny and accusations of being a pyramid scheme or a fraud.

Internal challenges nearly derailed the project before its 2020 launch.

Internal Conflict and Legal Battle

In 2020, co-founder Vincent McPhilip initiated a lawsuit against fellow founders Nicolas Kokkalis and Chengdiao fan, alleging wrongful termination and misuse of company funds.

McPhilip contended that Kokkalis and Fan, a married couple, allowed personal disputes to negatively impact the work environment.

He cited instances of heated arguments and physical altercations, which undermined his leadership. McPhilip stated that he spent more time addressing internal issues than focusing on the core business.

“Kokkalis and Fan experience household problems that spread to the office, creating an atmosphere full of screaming and physical aggression actions witnessed directly by the plaintiff,” statement in the lawsuit.

Tensions escalated in April 2020 when McPhilip took temporary leave to mediate the conflicts. kokkalis and Fan viewed this as neglect of duty and later revoked his access to company resources, including servers and financial accounts.

McPhilip further accused them of attempting to issue new shares at a nominal price of $0.00005 per share,significantly diluting his ownership stake. This move was perceived as an attempt to reduce McPhilip’s share in the project.

Pi Network secured substantial funding through Simple Agreements for Future Equity (SAFE), amassing capital with a valuation of $20 million in 2019 and 2020.

Kokkalis and fan refuted the allegations, asserting that McPhilip’s dismissal was based on violations of company policies.

The dispute was resolved amicably in July 2023, although the terms of the settlement were not disclosed. As then, McPhilip has remained active in the cryptocurrency sector, founding a new project called Knomad and participating in industry discussions on the X platform.

Pi Network Denies Fraud Allegations

Despite its expanding user base, Pi Network has faced accusations of illegal activity from skeptics.

On Feb. 22, 2025, the Pi Network core team issued a statement addressing these concerns, clarifying that fraudulent entities using the Pi Network name were not affiliated with the project.

The team stated that reports from Chinese authorities revealed the existence of individuals posing as Pi Network representatives to perpetrate fraud. They emphasized that they had not been contacted by authorities regarding this matter.

“PI Network has never been contacted by the police in China regarding this incident. We firmly condemn all fraud activities carried out by irresponsible parties,” clear Tim Pi Network.

Pi Network also addressed rumors linking the project to cryptocurrency exchange ByBit and its CEO, Ben Zhou. They denied any official dialog or collaboration with Bybit.

The Pi Network team stated that they have never commented about ByBit or Bans Zhou on social media and in other official statements. They also refused involvement with accounts that spread negative opinions about Zhou.

“Both PI Network and any party related to PI Network have never given any statement about Bybit or Mr.Zhou,both on social media platforms or through other channels. Therefore, except the statements listed in this upload, PI Network – although there are various statements that were made about PI – still chose not to issue any comments and maintain his neutral attitude related to Bybit, Mr.Zhou, and their business activities,” official statement from the project said.

Amid these controversies, the Pi Network token exhibited significant price volatility. The token gained significant value, trading at about $1.50. (2025-02-23)

PI Network Daily market Prices

This price marks a substantial recovery from previous performance after the launch of the mainnet. PI full valuation now stands at $158 billion, with a market capitalization of approximately $10 billion.

Pi Network’s journey has been marked by both promise and peril. From internal disputes threatening its early existence to ongoing fraud allegations, the project has faced numerous challenges. However, its recent market performance suggests resilience and continued interest from the crypto community. As with any cryptocurrency investment, potential users should exercise caution and conduct thorough research before participating in the Pi Network ecosystem.

How has Pi Network addressed allegations of being a pyramid scheme or a fraud?

Pi Network: A Conversation withcrypto Industry Veteran, Mark Stevens

Today, we sit down with industry veteran Mark Stevens, who has over a decade of experience in the cryptocurrency space. We discussed the tumultuous journey of pi Network, its mainnet launch, and the ongoing allegations surrounding the project.

Internal Struggles: AXYZ to Pi Network

Archyde: Mark, Pi Network’s journey began under a different name, AXYZ. Internal conflicts threatened to derail the project before its launch. Can you walk us through that challenging period?

mark Stevens: Indeed, those early years where tumultuous. The founding team had their share of disputes,stemming from personal issues that seeped into the workplace. Vincent McPhilip, one of the founders, sued Nicolas Kokkalis and Chengdiao Fan, accusing them of wrongful termination and misusing company funds. The allegations were serious, including heated arguments and physical altercations, which created a toxic work surroundings.

McPhilip claimed that he spent more time managing these internal issues than focusing on the core business. He accused Kokkalis and Fan of attempting to dilute his ownership stake by issuing new shares at a nominal price. The situation escalated when McPhilip took leave to mediate conflicts, and the others saw this as neglect of duty, revoking his access to company resources.

The Lawsuit and Resolution

Archyde: How did this legal battle impact the project’s momentum?

Mark Stevens: The lawsuit, understandably, cast a shadow over the project. It raised concerns about the team’s cohesion and leadership, which is crucial in the fast-paced crypto world. However, the dispute was eventually resolved amicably in 2023. The settlement terms were not disclosed, but McPhilip went on to found another project, Knomad, and continues to engage in industry discussions.

Despite the challenges, Pi Network managed to secure substantial funding through Simple Agreements for Future Equity (SAFE), achieving a valuation of $20 million in 2019 and 2020.

fraud Allegations: Addressing Skepticism

Archyde: Pi Network has faced accusations of being a pyramid scheme or a fraud. How has the project leadership addressed these allegations?

Mark Stevens: The Pi Network core team has consistently denied these allegations. In a recent statement, they clarified that fraudulent entities using the pi Network name are not affiliated with the project. Reports from Chinese authorities revealed individuals posing as Pi Network representatives to perpetrate fraud, but the team emphasized that they had not been contacted by authorities regarding this matter. They firmly condemned all such fraudulent activities.

It’s worth noting that Pi Network has also addressed rumors linking the project to cryptocurrency exchange ByBit and its CEO, Ben Zhou. They denied any official dialog or collaboration with ByBit and stated that they have never commented about ByBit or Zhou on social media or in other official statements.

Pi Network’s Market Performance

Archyde: Despite these challenges, Pi Network’s token has shown meaningful price volatility and a substantial recovery after the mainnet launch. What are your thoughts on the project’s market performance?

Mark Stevens: Pi Network’s journey has indeed been marked by both promise and peril. Its recent market performance suggests resilience and continued interest from the crypto community. The token’s valuation now stands at $158 billion, with a market capitalization of approximately $10 billion. However, as with any cryptocurrency investment, potential users shoudl exercise caution and conduct thorough research before participating in the pi Network ecosystem.

Archyde: Mark, thank you for sharing your insights on Pi Network’s journey. It’s clear that the project has faced numerous challenges, but it has also shown remarkable resilience.

Mark Stevens: My pleasure. the crypto landscape is dynamic, and projects like Pi Network offer valuable lessons for both investors and participants. It’s crucial to stay informed and adapt to the ever-changing terrain.

Do you have any thoughts or questions on Pi Network’s journey, dear readers? We’d love to hear your viewpoint in the comments.