Core team members of Filecoin-based liquid staking protocol STFIL are currently under investigation by Chinese police, according to a statement shared by the team on platform X.
Filecoin Liquid Staking Platform STFIL Under Investigation by Chinese Police
In the post, STFIL stated that lawyers have been assigned to understand the situation and provide legal support to team members currently in custody.
We believe that the STFIL core technical team is under investigation by local Chinese police, and we understand lawyers have been hired to understand the current situation and provide legal assistance to the individuals under detention.
Last week, when the core technical team…
— STFIL Protocol 🏔️ (@stfil_io) April 9, 2024
The situation escalated when it was reported that Filecoin tokens on the platform were transferred to an external address last week, amounting to 2.5 million FIL tokens, equivalent to approximately $22 million.
This movement of funds occurred during an unplanned update to the protocol, which the team described as abnormal.
In response to these developments, STFIL expressed its urgency to seek assistance from the community.
The team called on stakeholders to cooperate in tracking the unknown address to which FIL tokens were transferred and explore strategies to protect the interests of stakeholders affected by these events.
STFIL operates as a liquid staking protocol on the Filecoin network and allows users to earn staking rewards through FIL tokens, while issuing liquid stake tokens (LSTs) in return for their deposits and using them in decentralized finance (DeFi) activities.
Despite its innovative approach, the platform has experienced a significant decline in total value locked, falling by nearly 60% to $40 million since the beginning of April.
*This is not investment advice.
