Filecoin’s (FIL), has fallen by more 56% in the past 30 Days as it continues to be accused of fraud and pyramid schemes. It is currently being investigated by the police.
It has dropped by 2.41% today to trade at $8.19.
The Boss of Filecoin’s largest firm under police custody
Shikongyun boss, Filecoin’s largest firm in China, Lai Chuhang has been arrested by Guangxi police after being suspected of organizing pyramid schemes and fraud.
This isn’t the first instance. In November 2013, a few Filecoin companies from China were subject to police investigation after they ran FIL mining scams.
The police arrested 30 suspects, who had seized more than $50 million in the fraud.
Chinese government steps in on pyramid schemes
Chinese police are continuing to crackdown against Filecoin-related companies that run mining pools in China. After several agents set up pyramid schemes to increase project participation, the Chinese media reported that the scheme raised approximately $300 million.
However, Shikongyun’s authority and technical account have been transferred to the police at the moment after which the services will resume after the investigations are over.
Additionally, executives are currently working with the police in order to provide evidence. Some employees were allowed to return to their jobs by police after they assisted with the investigations.
Trend in Filecoin (FIL), price
Since September of last year, the Filecoin prices have been falling. The current filecoin price is at 89% after the fraud and scams report.
FIL traded at $8.25 as of the writing of this article, down 1.86% from its April 1st all-time high price of $237.24.
The crypto market crash has also had a significant impact on the Filecoin price fall.
Filecoin Foundation partnership Lockheed Martin
The price of FIL is continuing to fall. Filecoin Foundation, Lockheed Martin (an aerospace company) have plans to establish an InterPlanetary File Systems (IPFS node in space). This will increase data downloads and allow network participants to share information.