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

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There are reports that the Chinese authorities are looking into the liquid staking protocol, STFIL, due to suspicious transactions and proposed updates.

On April 9, the STFIL team announced in a post on Reddit that the core team members of their protocol are currently under investigation by Chinese authorities. The exact reasons for the probe remain undisclosed, but STFIL stated that they have hired legal counsel to deal with the situation and aid those involved.

There are reports suggesting that the Chinese authorities are investigating the STFIL tech team, led by the core members. It’s been confirmed that lawyers have been retained to clarify the situation and offer legal support to those currently in custody. In the past week, it has come to light that…— STFIL Protocol 🏔️ (@stfil_io) April 9, 2024

Last week, while the team was held in detention on the STFIL platform, there were unexplained transactions involving Filecoin (FIL) funds. The platform experienced irregular upgrades without prior notice. By the time of this report, more than 2.5 million FIL ($23.3 million) had been sent to an unidentified external wallet.

After discovering the new information, our team is reaching out for support. We’d greatly appreciate it if the community could assist us in identifying this unidentified location and share ideas on safeguarding the concerns of all involved parties.
The STFIL team

In simple terms, STFIL is the second largest Filecoin network participant, with approximately $40 million worth of cryptocurrency locked in. According to DefiLlama’s data, it comes after GLIF in rankings. Launched in 2023, STFIL was the first to introduce liquid staking in Filecoin, allowing FIL token owners to earn rewards through this feature.

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2024-04-09 12:19