Filecoin (FIL) Slips Nearly 4% As New Allegations Of Fraud Emerge

The Filecoin token’s (FIL) price has fallen nearly 4% in the last 24 hours, as its largest firm came under police investigation in China.

Lai Chuhang, the boss of Shikongyun- Filecoin’s largest firm, has been arrested by the Guangxi police on suspicion of fraud and organizing a pyramid scheme.

In November, several Chinese Filecoin companies were under investigation by the police for running pyramid schemes and FIL mining scams. The police arrested nearly 3o people involved in the scam and seized more than $50 million.

China Continues Crackdown on Filecoin Companies

Chinese companies operating Filecoin mining pools have been under police investigation due to suspected pyramid schemes. During the initial Filecoin launch several agents ran pyramid schemes to increase participation in the project. In 2019, Chinese media reported that a pyramid scheme had raised about $300 million.

Shikongyun is one of the largest companies running the largest Filecoin mining pool ‘Space-Time Cloud.’ The technical account and authority have been transferred to the police and services will resume after the completion of the investigation.

Some executives are still cooperating with the police to investigate and collect evidence. Meanwhile, several employees have returned to their jobs after cooperating with the police on the matter.

The Filecoin (FIL) price has declined continuously since September after reports of scams and frauds emerged. The price has fallen nearly 90% in these nine months, from $113 to a low of $6.74. In fact, the crypto market crash in early May also led the FIL price to drop significantly. At the time of writing, the price is trading at $8.30, with trading volume falling 32% in the last 24 hours.

Lockheed Martin Deal With Filecoin Foundation

While FIL price continues to fall, aerospace company Lockheed Martin and Filecoin Foundation announced plans to operate an InterPlanetary File System (IPFS) node in space to speed up data downloads and allow network participants to hold or share information.

Recommended
Price Analysis

Best Crypto Presales To Invest In September 2025 – Top Upcoming Presale Tokens

Best Crypto AI Trading Bots In 2025

Top Meme Coins To Buy In September 2025

Varinder Singh

Varinder has over 10 years of experience and is known as a seasoned leader for his involvement in the fintech sector. With over 5 years dedicated to blockchain, crypto, and Web3 developments, he has experienced two Bitcoin halving events making him key opinion leader in the space. At CoinGape Media, Varinder leads the editorial decisions, spearheading the news team to cover latest updates, markets trends and developments within the crypto industry. The company was recognized as Best Crypto Media Company 2024 for high impact and quality reporting. Being a Master of Technology degree holder, analytics thinker, technology enthusiast, Varinder has shared his knowledge of disruptive technologies in over 5000+ news, articles, and papers.

Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.

Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.