TechFlow News, January 29: According to a CoinDesk report, investors have filed a $100 million lawsuit against blockchain data storage project Cere Network and its founder Fred Jin, among other related parties, in a U.S. federal court, accusing them of fraud, racketeering, and large-scale token dumping.
The lawsuit alleges that, immediately following Cere Network’s 2021 initial coin offering (ICO), insiders sold tens of millions of dollars’ worth of tokens, causing the CERE price to plummet from approximately $0.45 at launch to nearly $0.0012 today—a decline exceeding 99%.
Plaintiffs Lujunjin “Vivian” Liu (former Senior Strategic Advisor) and Goopal Digital Ltd. accuse the defendants of misleading investors regarding token lock-up periods, customer adoption rates, and technical readiness, and seek $25 million in compensatory damages and $75 million in punitive damages. The lawsuit further alleges that Cere Network exaggerated its customer appeal, technical readiness, and enterprise adoption—including making false claims about Fortune 1000 clients—and that proceeds from the token sale were used to enrich insiders rather than fund business development.
