- The STFIL Protocol has claimed that it is under investigation by Chinese police, with connected individuals detained and questioned
- Over $20 million in FIL coins were moved to an unknown address following the detention, with abnormal upgrades allegedly made to the protocol
- STFIL has requested immediate assistance, although details are still unclear
Filecoin platform STFIL Protocol has claimed that it is under investigation by Chinese police, with individuals connected to it having been detained and questioned. The platform made the claim yesterday through its X account, adding that FIL coins on the platform, potentially those belonging to the team, were moved to an “unknown, external address” following the alleged detention while “abnormal, unscheduled upgrades” were also made to the protocol. STFIL has called for immediate assistance, but it doesn’t seem like the situation is affecting the platform’s functioning.
STFIL Sounds the Alarm
STFIL Protocol launched in late 2022, offering a variety of Filecoin staking and liquidity options. The platform has been running problem-free ever since, but the tweet put out yesterday suggests that the platform has rubbed the notoriously anti-crypto Chinese authorities up the wrong way:
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) April 9, 2024
The address the which the FIL coins were sent possessed no coins as of April 5 but today contains 3.2 million, worth over $20 million. The transfers have come in stages over the last five days, suggesting that a hack is unlikely:
While the message paints a troubling picture, with so few details it’s hard to know what to make of it. No connection haas been drawn between the alleged detention of the team members, the movement of the funds, and the change to the protocol, unless the individuals have been accused of carrying out an inside job and stealing the funds themselves.
The situation has been deemed serious enough for Filecoin to postpone a scheduled network upgrade until April 24, which would appear to be more related to the protocol changes as opposed to the coin move or the alleged police investigation.
