Filecoin Foundation Launches Investigation into the STFIL Incident in China
The Filecoin Foundation, a non-profit organization dedicated to advancing the Web3 Filecoin data storage protocol, is actively investigating the recent detentions of the Filecoin Liquid Stake (STFIL) team in China. In an effort to address the concerns of STFIL users and potential financial loss, the foundation has hired a lawyer in China to lead the investigation.
The STFIL protocol experienced technical issues in early April, leading to the suspension of its withdrawal functionality. It was discovered that the developer’s wallet had undergone unauthorized updates, resulting in the transfer of $23 million worth of Filecoin (FIL) tokens to an unknown address. On April 8, the STFIL team disclosed that key technical staff members had been detained by local Chinese authorities during which these suspicious updates and transactions transpired, leaving STFIL users uncertain about the recovery of their funds.
In a recent social media post by Danny O’BRIEN, a senior fellow at the foundation, he confirmed the engagement of legal counsel in China to investigate the incident. While the foundation believes that the STFIL team is currently held in police custody, it is unable to confirm if the authorities have seized the funds. However, they anticipate receiving more clarity on this matter within a week. The foundation intends to empower its attorney to represent all staking providers and leasers in potential court proceedings related to the incident. O’BRIEN pledged to provide further updates once the plans are finalized and requested affected staking providers to provide their contact information through a designated Google Doc or Slack Channel.
The Filecoin Foundation’s proactive steps to address this incident demonstrate their commitment to supporting the STFIL users and recovering any potential losses. This legal investigation aims to shed light on the full extent of the situation and provide a resolution for those affected by the STFIL incident.