24/01/2026
US Court: Pi Token Not a Security, Permanently Rejects Most of Moen's Lawsuit
+The Federal District Court for the Northern District of California has rejected all core allegations in the lawsuit filed by Harro Moen against Pi Network, while allowing the plaintiff to amend four of the seven allegations if he provides specific legal details before the deadline of February 5, 2026.
+According to the ruling, the three most important allegations, including violations of US Securities Law and retaliation against whistleblowers, were completely dismissed and cannot be re-filed. The remaining four allegations were dismissed due to “lack of specific details,” but the court left the door open for Moen to amend his case if he can provide clearer evidence.
+At the bottom line, the court determined that the Pi token does not meet the standards of a “security” under federal law. The main reason is that Moen did not invest money, but only “contributed time and data” to participate in the network.
+According to the court's analysis, the "investment with money" element in the Howey Test was not satisfied. This resulted in the permanent dismissal of the two most serious charges of violating Sections 5(a), (c) and securities fraud under Section 10(b).
+The court also dismissed the charge that Pi Network violated the Sarbanes-Oxley Act, a law protecting whistleblowers in public companies. The ruling stated that Moen was not an employee or worker of Pi Network, and therefore lacked the legal standing to be protected under this law.
+The charges of civil fraud, breach of trust, ill-gotten gains, and violation of the California Competition Act (UCL) were also dismissed.
+The court requires Moen to provide specific details, including which false statements were deemed fraudulent, who made them, when and where, why those statements were deemed false in the first place, and who is responsible for which specific actions.