The Lead
Cere Network co-founder Fred Jin and the protocol’s board are facing a $100 million class-action lawsuit filed in the U.S. District Court for the Northern District of California. The complaint, docketed as Case 3:2026cv00857, alleges the executives orchestrated a racketeering (RICO) conspiracy to defraud investors through a coordinated token “pump and dump” scheme.
The plaintiffs, led by early strategic advisor Lujunjin “Vivian” Liu and Goopal Digital Limited, claim insiders liquidated locked allocations immediately after raising $50 million, triggering a catastrophic devaluation of the CERE token.
The Allegations
The filing accuses Jin and fellow executives, including Brad Bao and Xin Jin, of misleading investors regarding Cere’s technical capabilities and enterprise adoption to inflate the token’s value ahead of its November 2021 launch. Following the public and private sales, the defendants allegedly bypassed lock-up periods to offload tens of millions of dollars in personal holdings.
The lawsuit seeks $25 million in direct damages and $75 million in punitive damages, citing provisions under the Racketeer Influenced and Corrupt Organizations (RICO) Act.
Market Impact
The market reaction has been absolute. The CERE token, which launched at ~$0.45, has effectively zeroed out. It is currently trading at $0.00034, a collapse of more than 99.9% from its all-time high. Volume has evaporated, with the project’s market cap shrinking to approximately $2.2 million, a fraction of the capital originally raised from investors.
Institutional Context
This filing marks an aggressive escalation in crypto litigation. By invoking RICO statutes, traditionally used for organized crime, the plaintiffs are bypassing standard securities negligence claims in favor of allegations that carry treble (triple) damages. The suit names multiple corporate entities, including Cerebellum Networks Inc. and CEF AI Inc., suggesting the plaintiffs intend to pierce the corporate veil to hold individuals personally liable for the protocol’s failure.
