Core Foundation, the creator of the yield-generating lstBTC token, won an injunction against Maple Finance for alleged confidentiality violations related to its partnership in bringing the token to market.
The Grand Court of the Cayman Islands granted the injunction against Maple Finance to complete its own liquid staking token, syrupBTC, or to trade CORE tokens pending arbitration proceedings, Core Foundation announced 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 harm” to Core, according to a court document dated Oct. 30.
Core Foundation and Maple partnered earlier this year to develop the token, which allows holders to earn returns on their bitcoins. holdings while your BTC is insured by custodians such as 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 accumulating $150 million in customer assets through the lstBTC partnership.
Core also accused Maple of creating risks for lenders by declaring “impairments in value of millions of dollars” of BTC deposits.
“It is unclear why Maple maintains that they cannot return the bitcoins to their lenders at this time, or whether they have the right to harm them,” Core said in the announcement.
Maple described Core’s actions as “directly against the interests of lenders,” in a post on X.
“Maple denies any allegations of wrongdoing on its part and will aggressively pursue all available remedies to ensure Core Foundation is held accountable for the consequences of its actions,” the Melbourne, Australia-based credit exchange said.
