Filecoin (FIL) has lost more than 56% in price over the past 30 days as the firm faces allegations of pyramid schemes and fraud and is now under police investigation.
It is trading down 2.41% today at $8.19.
Boss of Filecoin’s biggest firm in police custody
Shikongyun boss Lai Chuhang, the largest Filecoin firm in China, has been arrested by Guangxi police on suspicion of organizing pyramid schemes and fraud.
However, this is not the first case as some Filecoin companies in China were under police investigation after the FIL mining scam and running pyramid schemes in November last year.
During the investigation, police arrested about 30 suspects who had confiscated more than $50 million during the scandal.
Chinese government’s action on pyramid schemes
Chinese police continue to crack down on suspected Filecoin companies operating mining pools in the country. Several agents carried out pyramid schemes to increase participation in the project, after which Chinese media reported in 2019 that the scheme raised approximately $300 million.
However, Shikongyun’s authority and technical account have been transferred to the police for the time being, after which services will resume after the investigation is completed.
In addition, some officers are currently cooperating with the police to provide evidence. However, after assisting the police in the investigation, some employees have been returned to the job by the police.
Filecoin (FIL) Price Trend
Filecoin price has been falling since September last year and is currently down 89% over the past 9 months following reports of fraud and scams.
At the time of writing, FIL was trading at $8.25, down $1.86 in the last 24 hours from an all-time high of $237.24 on April 1 a year ago.
Furthermore, the current fall in the price of Filecoin has also been heavily affected by the current crypto market crash.
Filecoin Foundation partners with Lockheed Martin
As the FIL price continued to decline, the Filecoin Foundation and Lockheed Martin, an aerospace company, developed an Interplanetary File System (IPFS) in space to increase data downloads as well as allow network participants to share or store information. ) is planned to run node. ,