Core Foundation, the creator of the yield token lstBTC, has obtained an injunction against Maple Finance for alleged breach of confidentiality related to their partnership in bringing the token to market.
The Grand Court of the Cayman Islands has issued an injunction prohibiting Maple Finance from finalizing its own liquid staking token, syrupBTC, or trading in CORE tokens pending arbitration proceedings, the Core Foundation announced Wednesday.
Judge Jalil Asif said there is evidence to support Core’s claims that Maple was told its actions “would have the effect of causing very significant commercial damage” to Core, according to an Oct. 30 court document.
Core Foundation and Maple partnered earlier this year to develop the token, which allows holders to earn a return on their bitcoin. holdings while their BTC is secured by custodians like BitGo, Copper and Hex Trust.
The foundation claimed that Maple violated its exclusivity obligations and misappropriated Core’s intellectual property and confidential information to develop its own product while amassing $150 million in customer assets through the lstBTC partnership.
Core also accused Maple of creating risk for lenders by reporting “multi-million dollar value write-downs” of BTC deposits.
“It is unclear why Maple maintains that they are unable to return the bitcoins to their lenders at this time, or if they have the right to write them down,” Core said in the announcement.
Maple described Core’s actions as “directly against the interests of lenders,” in an article on X.
“Maple denies any allegations of wrongdoing on its part and will aggressively pursue all available remedies to ensure that Core Foundation is held accountable for the consequences of its actions,” the Melbourne, Australia-based credit market said.
