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Filecoin's liquid staking team under investigation by Chinese Police — report

The team behind the liquid staking platform said that their funds were subsequently moved after the detention.

An illustration of a police badge with handcuffs on the STFIL platform logo

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STFIL, a liquid staking platform for Filecoin (FIL) with just under $40 million in total value locked (TVL), has announced that its core technical team members are under investigation by local Chinese police. The platform has hired lawyers to provide legal assistance to the individuals currently in detention.

In an X post released Tuesday, STFIL revealed that while the core technical team was under detention last week, FIL tokens on the platform were moved to an “unknown, external address.” The address in question currently holds over 2.5 million FIL tokens, worth approximately $23 million. STFIL has called upon the community to help track this unknown address and discuss ways to protect stakeholders’ interests.

“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,” STFIL stated in the post.

The platform also noted that there have been abnormal, unscheduled upgrades to the protocol in the past few days. The funds were moved from the original STFIL address to the unknown address.

STFIL’s announcement has raised concerns among the Filecoin community, as the platform’s core team’s detention and the unauthorized movement of funds could potentially impact the security and stability of the staking platform. The move by Chinese authorities and the involvement of lawyers suggest a serious legal matter, though the specific nature of the Filecoin investigation remains undisclosed.

The Filecoin community is now faced with the challenge of tracking the unknown address and determining the best course of action to protect stakeholders’ interests. The incident highlights the risks associated with centralized control of staking platforms and the importance of transparent, decentralized governance in ensuring the security of users’ funds.

Note: This article was produced with the assistance of AI, specifically Claude 3 Opus for text and OpenAI’s GPT-4 for images. The editor has extensively revised the content to adhere to journalism standards for objectivity and neutrality.

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