Cere Network Faces $100M Fraud Lawsuit Over Alleged Token Dump Scheme

Investors have filed a $100 million lawsuit in U.S. federal court against individuals and entities linked to Cere Network, accusing the blockchain data project of fraud, racketeering, and orchestrating a large-scale token dump following its 2021 initial coin offering. The complaint, filed Tuesday, names Fred Jin, described as Cere’s founder and the alleged “ringleader,” alongside other defendants.

Furthermore, plaintiffs claim the group misled investors about Cere’s business prospects, customer adoption, and token lockup arrangements. They then sold large amounts of tokens shortly after launch.

Investors Allege Misrepresentation and Insider Token Sales

Cere Network markets itself as a decentralized cloud data platform that enables secure data collaboration across blockchain and traditional systems. According to the lawsuit, Jin promoted Cere as a blockchain-native alternative to centralized cloud providers, powered by the CERE token, which investors believed would serve payment and governance functions on the network.

Plaintiffs claim that Cere told investors the token would be listed on major exchanges, including Binance, and that funds raised would support infrastructure development. The lawsuit claims Cere raised nearly $50 million through private and public token sales in November 2021.

One plaintiff, Lujunjin “Vivian” Liu, says Cere recruited her as a senior strategic advisor and paid her partly in CERE tokens. She also invested personally and through Goopal Digital Ltd., an investment firm she was affiliated with.

Moreover, from 2019 to 2021, Liu says she spent up to 20 hours per week helping with fundraising, investor outreach, and token planning ahead of the public sale. Investors say Cere assured them that insiders’ tokens would remain locked up to prevent early selling. Plaintiffs argue that those assurances were false.

Token Collapse and Damages Claims

According to the filing, Jin and other insiders allegedly sold tens of millions of dollars’ worth of tokens immediately after launch, triggering a sharp price collapse. Per CoinGecko data, CERE fell from about $0.45 at launch to $0.06 within weeks and traded near $0.00033 as of Thursday, representing a decline of more than 99% from its peak.

The lawsuit also accuses Cere Network of overstating enterprise adoption, technical readiness, and customer traction, including claims about Fortune 1000 clients that plaintiffs say lacked factual support. Investors allege that insiders diverted token sale proceeds for personal enrichment rather than business development.

Liu and Goopal seek $25 million in compensatory damages and $75 million in punitive damages, citing the alleged scale and severity of the misconduct.

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