According to Filecoin’s (FIL) liquid staking project STFIL, they have detected unusual token transfers and unclear protocol enhancements since members of their team were under investigation by Chinese authorities.
On April 9th, the protocol stated that they believe Chinese officials are still examining the core technical team of the group. As mentioned in a recent X post, those who have been taken into custody have already been provided with legal representation.
“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, the team behind the liquid staking protocol announced that some of their members had been detained. As a result, approximately 2.5 million FIL tokens from the STFIL platform were transferred to an unidentified external wallet. Currently, this wallet contains around $23 million worth of FIL tokens.
Additionally, STFIL reported unplanned protocol upgrades during the ongoing investigation.
The staking platform requested for community involvement and asked everyone to keep an eye on a mysterious wallet receiving tokens. They expressed their hope that collectively, the community could identify this address and explore methods to safeguard stakeholders’ investments.
In simpler terms, some individuals within the X community who asserted that they had deposited their FIL tokens are debating ways to get their money back. A few of them have raised concerns about the possibility of law enforcement agencies seizing their funds.
Simultaneously, the value of the Filecoin token stays robust in the face of challenges. Reaching a peak of $9.32 within the last 7 days, File boasted a substantial trading volume of $265 million within the previous 24 hours.
Currently, the token hovers at $9.12, according to coin information tracker CoinGecko.
Chinese authorities have previously taken action against crypto initiatives. For instance, in the year 2023, Multichain, a cross-chain protocol, was compelled to cease its activities because of financial constraints.
After the CEO and co-founder, Zhaojun He, was arrested by Chinese authorities, the project was left with limited information and was forced to shut down its operations.
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2024-04-09 14:37