Filecoin

Liquid staking protocol STFIL is allegedly under investigation by Chinese police amid concerning fund transfers and protocol upgrades.
The STFIL team revealed in <a href="https://x.com/stfil_io/status/1777560493017686264" target="_blank" rel="noopener noreferrer nofollow">an X post</a> on Apr. 9 that the core team members of the protocol are under investigation by local Chinese police. Although specific details surrounding the investigation were not disclosed, STFIL noted that legal representation has been engaged to manage the situation and support the individuals implicated.
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
 <div class="wp-block-embed__wrapper">
 <blockquote class="twitter-tweet" data-width="550" data-dnt="true">
 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) <a href="https://twitter.com/stfil_io/status/1777560493017686264?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">April 9, 2024</a>
 </blockquote>
 <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
 </div>
</figure>
You might also like: <a href="https://crypto.news/sec-categorizes-filecoin-as-security-grayscale-faces-regulatory-challenge/" rel="noopener noreferrer nofollow"> SEC categorizes Filecoin as security; Grayscale faces regulatory challenge </a>
STFIL pointed out that during the period of the team’s detention last week, funds in Filecoin (FIL) on the STFIL platform were transferred to an unknown external address, with the protocol undergoing “abnormal, unscheduled upgrades.” As of press time, the recipient of the transferred funds holds over 2.5 million FIL (worth approximately $23.3 million).
<blockquote class="wp-block-quote">
 “Upon learning the above information, the team is actively seeking assistance. We hope that the community can help track this unknown address and discuss ways to protect the interests of stakeholders.”
 The STFIL team
</blockquote>
STFIL ranks as the second-largest protocol in the Filecoin ecosystem by total value locked. Based on DefiLlama data, it trails only GLIF, with an allocation of nearly $40 million in cryptocurrency. Introduced in 2023, STFIL pioneered Filecoin’s liquid staking protocol, offering FIL token holders the opportunity to earn returns through liquid staking.
Read more: <a href="https://crypto.news/solana-filecoin-unite-boost-decentralized-data-storage/" rel="noopener noreferrer nofollow"> Solana, Filecoin unite to boost decentralized data storage </a>

Chinese police investigate developers of Filecoin’s second-largest defi protocol STFIL

crypto.news

Other articles published on Apr 9, 2024

HashKey Group Plans To Introduce Ethereum Layer-2 Chain

Solana To Get Fix For Implementation Bug on April 15

Donk.Meme’s Presale Hits Remarkable Milestone With DAO Leaderboard Launch On The Horizon

Analysts forecast imminent rise for Solana, Cardano; KangaMoon nears $5M presale milestone

United States Treasury Seeks More Powers to Sanction Cryptocurrency Exchanges

Google Cloud Announces Integration of Nvidia’s Next-Gen Blackwell Platform in 2025

Join our free newsletter for daily crypto updates!