NewsletterFilecoin (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.
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more… to our readers. Our journal 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.
Premium Partners
Delivered every day.
- Insights that move markets
- 100,000 active subscribers
Related Articles
- December Recovery Ahead? Coinbase Outlines Why Crypto Market May Rebound
- Peter Brandt Hints at Further Downside for Bitcoin After Brief Rebound
- $1.3T BPCE To Roll Out Bitcoin, Ethereum and Solana Trading For Clients
- Why is the LUNC Price Up 70% Despite the Crypto Market’s Decline?
- CoinShares Fires Back at Arthur Hayes, Dismisses Fears Over Tether Solvency
- Ethereum Price Holds $3,000 as Bitmine Scoops Up $199M in ETH; What Next?
- Solana Price Outlook Strengthens as Spot ETFs See $15.68M in Fresh Inflows
- Dogecoin Price Gears Up for a $0.20 Breakout as Inverse H&S Takes Shape
- Bitcoin Price Forecast as BlackRock Sends $125M in BTC to Coinbase — Is a Crash Inevitable?
- XRP Price Prediction As Spot ETF Inflows Near $1 Billion: What’s Next?
- Solana Price Outlook: Reversal at Key Support Could Lead to $150 Target
