The Pi Network is facing a growing crisis as it approaches the new phase of its transition to the mainnet on June 28, 2025. A large number of users have reported failures in identity verification (KYC), disruptions in two-factor authentication (2FA), as well as disappearing wallet balances, despite their full compliance with the required procedures.

It is worth noting that the Pi Network uses a variant of the Stellar Consensus Protocol (SCP), and is set to transition to an improved proof-of-stake system later, once the decentralized nodes are ready.

The Pi Network was launched in 2019, aiming to enable cryptocurrency mining through a mobile app without significant energy consumption. With millions of digital tokens accumulated during the testing years, the mainnet was officially launched in early 2025, with the goal of becoming a decentralized finance platform focused on mass adoption and mobile transactions.