The Filecoin (CRYPTO:FIL) Foundation has launched an investigation into the arrest of team members linked to the Filecoin Liquid Staking (STFIL) protocol in China, seeking legal assistance for the inquiry.
Senior fellow Danny O’Brien stated that their primary objective is to determine the fate of missing funds, amounting to $23 million, following disruptions in STFIL's operations, which included unauthorised upgrades and fund transfers to an unknown address.
Concerns have been raised about the security and recoverability of the funds, especially with the detention of key STFIL technical staff by local authorities.
The foundation's lawyer is actively working to ascertain the custody status of the detained team members and the potential involvement of the displaced funds.
With confidence in its investigative approach, the foundation expects to gain clarity on the situation soon and plans to provide support to affected parties in navigating any legal challenges arising from this troubling episode.