Filecoin Foundation has started an investigation into the disappearance of $23 million in FIL tokens from the Filecoin Liquid Staking (STFIL) protocol. This occurred after STFIL’s core team was reportedly detained by Chinese police in early April.
Danny O’Brien, a senior fellow at the foundation, posted on X revealing that an attorney had been sent to China for investigation purposes. The illegal upgrading and shifting are considered to have taken place during the arrests.
When users lend FIL tokens to storage providers on the Filecoin network through STFIL, they can earn rewards. However, withdrawals were unavailable due to the related event. The Foundation is looking to trace the funds within the next week and stands ready to represent all affected STFIL users in any legal proceedings.
