Mysterious token movements and platform upgrades arise as Chinese police launch investigation

Filecoin’s liquid staking protocol, STFIL, has reported suspicious activities and unexpected protocol updates following an investigation by Chinese law enforcement into its team members. The protocol believes that the Chinese authorities are still examining its core technical team. The detained team members have been provided with legal assistance, as stated in an X post by the protocol. During the team members’ detention, Filecoin (FIL) tokens on the STFIL platform were transferred to an unknown external address, which now holds approximately 2.5 million FIL tokens valued at around $23 million. In addition, STFIL has noticed abnormal and unscheduled upgrades within the protocol during the ongoing investigation. The staking platform is seeking assistance from the community to monitor the address that received the tokens and protect the interests of stakeholders. Concerned community members are discussing ways to recover their funds and questioning how the police can access their funds. Despite these issues, the Filecoin token’s value remains strong, with FIL reaching a seven-day high of $9.32 and a 24-hour trading volume of $265 million on April 9. Currently, the token is trading at around $9.12. Chinese authorities have previously cracked down on cryptocurrency projects, as seen with the case of Multichain in 2023, which was forced to halt its operations due to a lack of funds after its CEO and co-founder, Zhaojun He, was taken into custody.