Filecoin’s liquid staking protocol, STFIL, has reported unusual token movements and unexpected protocol upgrades following an investigation by Chinese authorities into its team members. The protocol believes that its core technical team members are still being investigated by the Chinese police. The detained team members have received legal assistance, according to a post on X. During the time of the detention, Filecoin (FIL) tokens on the STFIL platform were transferred to an external address, which currently holds 2.5 million FIL tokens worth around $23 million. STFIL has also observed abnormal protocol upgrades during the investigation. The platform is seeking assistance from the community to monitor the address that received the tokens and protect stakeholders’ interests. Community members who staked their FIL tokens on the platform are discussing ways to recover their funds and questioning how the police can access their funds. Despite these issues, the Filecoin token has remained strong, recording a seven-day high of $9.32 on April 9 with a 24-hour volume of $265 million. Currently, the token is trading around $9.12. This is not the first time Chinese authorities have cracked down on crypto projects, as seen in the case of Multichain in 2023 when the cross-chain protocol was forced to halt its operations due to a lack of funds after its CEO and co-founder was taken into custody.
Chinese law enforcement investigation prompts enigmatic token shifts and platform enhancements