Filecoin Foundation Launches Legal Inquiry in China Over STFIL Incident

The Filecoin Foundation has initiated a legal inquiry in China concerning the reported detention of Filecoin Liquid Staking (STFIL) team members and the missing funds associated with the STFIL incident. Foundation senior fellow Danny O’Brien confirmed in a social media post that the foundation has retained legal representation in China to investigate the situation. The STFIL protocol encountered issues in early April when withdrawals ceased functioning after an unexpected series of upgrades and the transfer of $23 million worth of Filecoin (FIL) tokens to an unknown address. The STFIL team announced that core technical members had been detained by local Chinese police during this period. While the foundation has not been able to confirm whether the police hold the missing funds, they anticipate obtaining more information within the next week. Additionally, the foundation plans to allow its attorney to represent all affected staking providers  in potential court proceedings related to the incident. Further details are expected to be shared as the investigation progresses.