Cere Network Co-founders and Board of Directors Sued for $100 Million Alleging Token Issuance Fraud

BlockBeats News, January 29, Decentralized Data Cloud Platform Cere Network is embroiled in another legal storm. According to a recent complaint filed in the San Francisco Federal Court, Cere co-founder Fred Jin and his family, board members are accused of orchestrating a "pump-and-dump" scheme during the 2021 token public offering, illegally siphoning investor funds, with the claim amount reaching up to $100 million.

Plaintiff Vivian Liu, who is both a Cere employee and an investor, alleges that Jin had promised that his and early investors' tokens would not unlock until months after the launch, but in reality, Jin and his associates secretly dumped over $41 million worth of CERE tokens across multiple exchanges immediately after the token went live and transferred the funds to personal wallets.

This is the second lawsuit Cere Network has faced this month. Previously, on January 13, co-founder Kenzi Wang had sued Jin and the board on behalf of the company in the Delaware Chancery Court, alleging the systematic misappropriation of over $58 million in company assets, disguised through fraudulent accounting, shell entities, and wash trading.

The latest complaint also alleges that Jin had collaborated with market maker Gotbit, who had been convicted of market manipulation, to use trading bots for volume inflation to conceal fraudulent activities. Currently, the CERE token price has plummeted by approximately 99.9% from its November 2021 peak. Cere Network and Fred Jin have yet to respond to the allegations.