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Parallel Lawsuits Add Pressure

Tuesday’s filing comes just two weeks after Cerebellum Networks co-founder Ken Wang filed a related lawsuit in Delaware’s Court of Chancery, accusing the same defendants of systematically diverting approximately $58 million in Cere token assets.

Wang’s suit names Jin, his wife Maren Schwarzer, his brother Xin Jin, Cere’s chief marketing officer Martijn Broersma, Lime co-founder Brad Bao, and director Francois Granade — all of whom also appear in Goopal’s complaint.

Wang alleged that $41.78 million in token transfers were secretly lined up immediately following the November 2021 ICO, contradicting repeated public assurances that insider tokens were locked.

A Pattern Alleged Across Ventures

According to Goopal and Liu, Liu met Jin in 2019 and joined Cere after being promised a return on her investment and profits tied to the Cere token.

Throughout her involvement, Jin allegedly misrepresented lock-up provisions, claimed Cere had multiple Fortune 500 clients, and assured her that investor funds would be used to develop the platform.

Instead, the suit claims Jin followed a familiar script.

“Unbeknownst to plaintiffs,” the complaint says, Jin allegedly engaged in a recurring pattern of launching ventures, raising funds under false pretenses, extracting insider value, and abandoning the enterprise.

Plaintiffs say the pattern began with mobile gaming company Funler in 2015, continued with education blockchain platform Bitlearn in 2017, and resurfaced with Cere Network in 2019.

Token Transfers and Price Collapse

On the day of the ICO, Cere tokens were allegedly transferred to HTX Exchange and KuCoin Exchange, then sold through accounts controlled by Jin and his associates through Dec. 31, 2021.

Plaintiffs allege the total proceeds reached $41.78 million, which were then routed through intermediate wallets and laundered.

The Cere token hit an all-time high of 47 cents on launch day. According to the complaint, aggressive insider selling caused the price to plunge from $0.45 to $0.06 within weeks.

Today, the token trades at roughly $0.0012, representing a 99.7% collapse from its peak.

“In other words,” the suit states, “the Cere Token is utterly worthless.”

Tokens Promised, Never Delivered

After the ICO, Liu says she repeatedly requested the tokens she was promised, but never received them. To date, neither Liu nor Goopal has obtained their Cere tokens, the complaint alleges.

As a result, plaintiffs argue they were prevented from selling at market prices when the token was near its peak.

Liu is seeking $9.4 million for the value of 20 million tokens she was owed at the time of the ICO, while Goopal is seeking $15.66 million tied to 33.3 million tokens.