One of China’s leading Filecoin companies, Shikongyun, has been sued by local prosecutors for allegedly selling almost $100 million in a pyramid scheme. This has led to a wider investigation by Chinese authorities into Filecoin companies and their founding teams. As of now, almost all the Chinese companies involved in Filecoin are under scrutiny by the police. This news has shaken the cryptocurrency market, causing some investors to lose faith in Filecoin as a safe investment. It remains to be seen how this situation will unfold, but it is clear that the Chinese government is cracking down on illegal activity within the cryptocurrency industry.
Source: https://coinpedia.org/crypto-live-news/chinas-shikongyun-sued-for-filecoin-pyramid-scheme/