Filecoin liquid staking platform STFIL’s team members under investigation

Filecoin liquid staking platform STFIL has informed the public that some of its members are under investigation by the Chinese police. According to the platform’s post on X, its core technical team is being investigated. The handle mentioned that lawyers have been contacted to help the individuals in detention.

Filecoin liquid staking platform details the fund movements

STFIL was enmeshed in a scandal last week after the platform’s tokens were moved to an unknown external wallet while its members were under police detention. According to the post on X, the lawyers will provide the needed assistance to the team members currently under detention.

“We understand lawyers have been hired to understand the current situation and provide legal assistance to the individuals under detention,” STFIL said.

The address involved holds more than 2.5 million FIL tokens worth about $23 million in today’s market. The movement of the funds happened in the middle of an unscheduled update on the platform, one which the team said was ‘abnormal’. In its latest statement, STFIL said it is seeking assistance from the entire community regarding the issue. “Upon learning the above information, the team is actively seeking assistance,” STFIL stated.

Fund movement and community response

STFIL urged users in its community to aid in the wallet-tracking process to recover the funds. It also noted that there is a need to discuss ways to help stakeholders. “We hope that the community can help track this unknown address and discuss ways to protect the interests of stakeholders,” the handle added.

STFIL is a liquidity staking platform on Filecoin that rewards users through staking their FIL tokens. Users can still use their tokens because the platform gives them liquidity staking tokens (LSTs) in return for their deposits. The total value locked (TVL) on the protocol currently stands at $40 million, experiencing a significant drop of 60% since April. In August 2023, a Filecoin mining firm and its executives were charged with carrying out a pyramid scheme. According to the Chinese police, the executives stole about $83 million.