Chinese police have apprehended the core development team behind the decentralized storage network Filecoin (FIL) following the transfer of $22 million worth of FIL tokens to an unknown external address.
The Filecoin Staking Protocol is a decentralized network that encourages users to store and retrieve data using, its native asset FIL. It was launched on July 15, 2014, and has gained significant support in over the years.
Legal Representative to Help Team Members
According to a post on the X platform, the STFIL team announced that legal representatives have been hired to help the detained individuals. The post also revealed that the core technical team has been in detention since the first week of April.
The detained individuals, whose identities have not been disclosed publicly, are being scrutinized for their potential involvement in the incident.
Furthermore, the team highlighted unexpected and unplanned protocol upgrades that have occurred in recent days. The transfer funds were directed to the following address: f410falck3ysg7e2k4outtq2r24ytd66cuddydnoga6a.
Upon uncovering the unauthorized transfer of FIL tokens, the STFIL team is actively investigating ways to trace the unknown address and protect stakeholder interests.
Following the incident, investors and stakeholders are closely monitoring developments as they await further updates from Filecoin’s team and regulatory authorities.
Filecoin’s CEO, Juan Benet, has reassured users that their assets are protected and has pledged to work tirelessly to resolve the situation.
Users Question Incident Timing.
In response to the STFIL team’s appeal for assistance, some users offered to provide police contacts, while others raised doubts regarding the timing of the incident. Some individuals speculated that it might have been an inside job or a deliberate “rug pull.”
One user suggested the unknown attackers responsible for the action may have taken control of the STFIL contract.
“STFIL’s contract control was ‘stolen.’ Contract attackers are destroying and modifying contracts in an attempt to steal assets. The situation is very critical! We implore Filecoin Governance, Filecoin Foundation, and Protocol Labs to help resolve the issue and protect the communities,” the user stated.
According to CryptocurrenciesToWatch, FIL currently has a market cap of $4.43 billion and a live price of $8.
