The Stop Work Order stands, it does not show as resolved, I do not see any applicable permits as issued.
I think this looks very bad on the City, they should be arresting workers on site. If people can flaunt City orders, it renders the entire system worthless.
I may or may not work for the City. There are many areas that are slow or broken, but in this instance I can assure you that Toronto Building / the Chief Building Official are not.
Under the Building Code Act, the City has a positive obligation to inspect and enforce. When the City learns of a contravention, action is almost immediate. Typically the CBO issues an Order, then charges, then the City will seek a court injunction.
Notably, the Building Code Act does
not contain arrest powers, so this is not an option. An individual can face fines of up to $100,000 per offence, and a corporation up to $1.5 million per offence.
Working without a permit would expose a builder to massive liability if something went wrong, so it is more likely the permit has been issued, the work doesn't require a permit, or this is a mistake.
Since none of us are the Chief Building Official, this entire conversation seems like pure speculation and overreaction. If you're concerned, report it to the City.