Cere Network Faces Funding Scam Controversy: $100 Million Investment Lawsuit Exposed

LiquidatedAgain · 2026-02-17T01:00:51+00:00

Investors have filed a lawsuit against Cere Network, accusing its founders and other insiders of false advertising and massive sell-offs after the token launch, leading to a 99% crash in the CERE token price. The case highlights the lack of regulation in token lock-up mechanisms within crypto projects, and investors need to stay vigilant to protect their interests.

LiquidatedAgain

2026-02-17 01:00:51

Abstract generation in progress

According to CoinDesk, investors recently filed a lawsuit in the U.S. federal court, accusing multiple individuals and entities associated with Cere Network of significant misconduct. The case, involving $100 million, alleges that the defendants engaged in large-scale fraud following the token issuance in the 2021 era, drawing intense market attention. As a blockchain data storage project, Cere Network’s founder and “mastermind” Fred Jin, along with other defendants, are accused of making false statements to investors during the fundraising phase.

The Fundraising Scam: From $50 Million to Market Dump

Legal documents show that Cere raised nearly $50 million through private and public token sales at the end of 2021. Investor Vivian Liu is a key witness in the case; she previously served as a senior strategic advisor for the project and received CERE tokens as compensation, while also making additional investments through her affiliated investment firm Goopal Digital Ltd.

Investors were explicitly told that tokens held by insiders would be subject to strict lock-up restrictions to prevent the founding team from dumping tokens early in the project. However, the complaint states that Fred Jin and other insiders quickly violated this promise after the token launch, selling off tokens worth tens of millions of dollars.

Token Lock-up Was Ineffective, Investors Suffer Massive Losses

This series of actions directly caused a sharp decline in CERE’s price. According to the latest market data, CERE’s current price has fallen to extremely low levels, down over 99% from its all-time high. This means investors’ funds have been nearly wiped out, with many participants in the 2021 fundraising facing substantial losses.

The case exposes the lack of effective regulation over token lock-up mechanisms in crypto projects. Investors were misled into believing that token lock-up would protect their interests, only to be deceived. This lawsuit not only poses a legal threat to Cere Network but also serves as a warning to the entire industry—investors need to scrutinize project governance structures and the true intentions of insiders more carefully when participating in token fundraising.

CERE-1,37%

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.