Core Foundation, the creator of the yield-bearing lstBTC token, won an injunction against Maple Finance due to alleged breaches of confidentiality related to their partnership in bringing the token to market.
The Grand Court of the Cayman Islands barred Maple Finance, which filled its own liquid token, sirupBTC, or from trading in CORE tokens pending arbitration, the Core Foundation announced on Wednesday.
Judge Jalil Asif said there is evidence to support Core’s claims that Maple was informed that its actions “would have the effect of causing very significant commercial damage,” to Core, according to a court document dated Oct. 30.
The Core Foundation and Maple teamed up early this year to develop the token, which allows holders to earn returns on their bitcoin holdings, while their BTC is secured by custodians such as BitGo, Copper and Hex Trust.
The fund alleged that Maple breached its exclusivity obligations and misappropriated Core’s intellectual property and confidential information to develop their own product while amassing $150 million in client assets through the lstBTC partnership.
Core also accused Maple of creating risk for lenders by declaring “millions of dollars worth of impairments” of BTC deposits.
“It is unclear why Maple maintains that they are unable to return bitcoin to their lenders at this time, or whether they have the right to impair them,” Core said in the release.
Maple described Core’s actions as “directly against the interests of the lender,” in a post on X.
“Maple denies any allegation of wrongdoing on its part and will aggressively pursue all available remedies to ensure that Core Foundation is held accountable for the consequences of their actions,” the Melbourne, Australia-based credit marketplace said.
