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.

Varinder is a Technical Writer and Editor, Technology Enthusiast, and Analytical Thinker. Fascinated by Disruptive Technologies, he has shared his knowledge about Blockchain, Cryptocurrencies, Artificial Intelligence, and the Internet of Things. He has been associated with the blockchain and cryptocurrency industry for a substantial period and is currently covering all the latest updates and developments in the crypto industry.

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