Mysterious Token Movements and Platform Upgrades: Chinese Police Probe

The liquid staking protocol STFIL, which operates on the Filecoin (FIL) blockchain, has claimed that there have been suspicious token movements and unexpected protocol upgrades following an investigation by the Chinese police into their team members. In a recent post, STFIL expressed their belief that Chinese authorities are currently looking into their core technical team. The team members who were detained have reportedly obtained legal assistance. STFIL also revealed that during the period of detention, FIL tokens on their platform were transferred to an unknown external address holding approximately 2.5 million FIL tokens worth around $23 million.

STFIL stated that there have been abnormal and unplanned upgrades within their protocol during the investigation. They are now seeking the community’s assistance in monitoring the address where the transferred tokens were sent, and they hope that together they can find ways to protect the stakeholders’ interests. Some community members who had staked their FIL tokens on the platform have been discussing how they could recover their funds and questioning how the police could take control of the funds.

Despite these issues, the Filecoin token has remained strong. On April 9, FIL reached a seven-day high of $9.32 with a 24-hour trading volume of $265 million. Currently, the token is hovering at around $9.12, according to CoinGecko. It is worth noting that this is not the first instance of Chinese authorities cracking down on cryptocurrency projects. In 2023, the cross-chain protocol Multichain had to cease operations after its CEO and co-founder, Zhaojun He, was taken into custody by Chinese police due to a lack of funds. With limited information available, the project had no choice but to wind down its activities.