A federal RICO lawsuit has been filed in the U.S. District Court for the Northern District of California (Case No. 3:26-cv-00857) against Brad Bao, co-founder and former CEO of Lime, along with several other defendants over an alleged large-scale cryptocurrency fraud scheme.
The complaint seeks $100 million in damages and centers on the collapse of the Cere Network token.
Core Allegations
Investors Vivian Liu and Goopal Digital Ltd. allege that the defendants orchestrated a pump-and-dump scheme involving the Cere token.
According to the lawsuit, the token fell more than 99.7%, declining from a peak of $0.47 in 2021 to approximately $0.0012 by early 2026.
The plaintiffs claim Cere CEO Fred Jin and associated parties sold $41.78 million worth of tokens despite public assurances that their holdings would remain locked. The complaint further alleges that market maker Gotbit Ltd. was used to conduct wash trading in order to obscure insider selling and artificially support price levels.
Additionally, the filing claims $16.6 million was diverted into personal accounts and speculative DeFi investments.
Brad Bao’s Alleged Role
Brad Bao is accused of lending credibility to the project through his association and board-level involvement. The lawsuit alleges that he approved certain transactions and received compensation tied to his participation.
The complaint does not assert criminal charges at this stage, and all allegations remain unproven.
Broader Legal Context
The case reflects a broader 2026 trend of using the Racketeer Influenced and Corrupt Organizations (RICO) Act to pursue digital asset fraud cases in U.S. federal courts.
RICO statutes, traditionally used in organized crime prosecutions, allow plaintiffs to seek treble damages and pursue coordinated fraud claims across multiple defendants.
As proceedings move forward, the case may test how aggressively federal courts apply RICO frameworks to crypto-related disputes.
