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In a lawsuit filed by Goopal Digital Limited and Vivian Liu in federal court in California, Cere Network co-founder Fred Jin and CMO Martijn Broersma, alongside independent director Brad Bao and others, are accused of an alleged looting scheme involving roughly $58 million in “Cere” tokens and other company assets, allegedly siphoned through secret token dumps and related schemes.
The lawsuit further claims the defendants have now formed a new company, CEF AI Inc., allegedly financed using proceeds misappropriated from Cere Network investors.
The complaint seeks a forensic accounting, appointment of a receiver, establishment of a constructive trust, and disgorgement of all compensation by those named, among other forms of relief.
Also named in the suit are Fred Jin’s wife, Maren Schwarzer (a German citizen); his brother, Xin Jin; and Francois Grenade (a French citizen).
Among other allegations, the complaint accuses Fred Jin of lining up $41.78 million in secret token transfers immediately after the initial Cere coin offering on Nov. 21, 2021.
“Fred Jin maintained complete control over 86% of Cerebellum’s financial records” and “presented grossly falsified financial statements to shareholders,” the complaint said.
Schwarzer was the sole director of a shell company, BNW Network GmbH, that allegedly controlled crypto wallets and accounts holding Cerebellum and Cere Network assets. The setup allegedly allowed the defendants to receive and launder misappropriated proceeds, hide backdated invoices for sham services, and use ill-gotten funds for personal expenditures and asset acquisitions.
The suit also alleges market manipulation efforts through Gotbit Ltd., a company later convicted of wire fraud and market manipulation. According to the complaint, sophisticated bots and wash trading were used to create the false appearance of organic Cere token trading volume while Fred Jin and his alleged co-conspirators sold off their holdings.
Additional millions were allegedly diverted from crypto wallets, with roughly $10 million in company assets lost through investments in other failed decentralized finance projects.
The Cere tokens were allegedly sold through personal accounts controlled by Fred Jin, Schwarzer, and Xin Jin, despite repeated public promises that insider tokens were locked under strict vesting schedules.
Fred Jin maintained complete control over 86% of Cerebellum’s financial records” and “presented grossly falsified financial statements to shareholders
During the same year as the initial coin offering, approximately $28.3 million was raised from 5,000 U.S. investors through the Republic initial coin offering platform. The complaint claims that at least $16.6 million was diverted over a six-month period beginning in October 2021.
A professional auditor was retained after videoconferences in mid-March included presentations of allegedly fabricated financial statements. A forensic examination then began, stretching from mid-2023 into 2025.