• Core Foundation invested heavily in lstBTC development with Maple Finance since February partnership.

• The dispute centers on Maple’s alleged misuse of confidential information to create syrupBTC, violating a 24-month exclusivity clause.

• Over $150 million in BTC was purchased through the product, held in bankruptcy-remote custodians like BitGo, protecting lenders.

Discover the Cayman Islands injunction against Maple Finance in the Core Foundation lstBTC dispute. Learn how this impacts liquid staked Bitcoin and crypto partnerships. Stay updated on key developments.

What is the Core Foundation vs Maple Finance injunction about?

The Core Foundation vs Maple Finance injunction stems from allegations of breach in a commercial agreement for developing lstBTC, a Core-powered liquid staked Bitcoin token. The Grand Court of the Cayman Islands granted the injunction on October 30, 2024, following claims by Core Foundation that Maple misused confidential information and violated an exclusivity clause by pursuing a rival product, syrupBTC. This ruling aims to preserve the status quo until arbitration resolves the matter.

How did the partnership between Core Foundation and Maple Finance begin?

The partnership between Core Foundation and Maple Finance was announced in February 2024 at the Consensus Hong Kong event, focusing on creating lstBTC to enable Bitcoin holders to earn yields while maintaining custody with licensed firms such as BitGo, Copper, and Hex Trust. Core Foundation made substantial financial and technical investments in development, marketing, promotion, and subsidies, helping Maple grow its assets under management from under $500 million at the partnership’s start. By April 2024, the Bitcoin Yield offering evolved into lstBTC, facilitating over $150 million in BTC purchases through an early over-the-counter version, with all assets held in fully bankruptcy-remote, segregated portfolios to shield lenders from Maple’s other business risks.

Frequently Asked Questions

What led to the allegations against Maple Finance in the lstBTC dispute?

Core Foundation alleges that by the end of the first half of 2025, Maple Finance began using confidential information and resources from the lstBTC partnership to develop syrupBTC, a competing product. This action reportedly breached the 24-month exclusivity clause, as Maple continued to leverage Core’s investments while building a rival offering, prompting legal action to protect the original agreement’s integrity.

What are the implications of the Cayman Islands injunction for crypto investors?

The injunction prevents Maple Finance from launching syrupBTC or conducting transactions with CORE tokens without Core Foundation’s written consent, ensuring no unfair advantage in the competitive liquid staked Bitcoin space. For investors, it safeguards assets in lstBTC by maintaining segregated holdings and upholding risk management measures like put options against CORE token volatility, promoting stability in yield-generating crypto products.

Key Takeaways

• Partnership Growth: The collaboration boosted Maple’s assets and led to significant BTC acquisitions, highlighting the potential of liquid staked tokens in DeFi.
• Legal Protections: Bankruptcy-remote custodians and exclusivity clauses underscore the importance of robust agreements in crypto ventures to protect stakeholders.
• Arbitration Path: The court’s support for prompt arbitration within 28 days offers a structured resolution, potentially setting precedents for similar disputes in the industry.

Conclusion

The Core Foundation vs Maple Finance injunction highlights the complexities of partnerships in the rapidly evolving world of liquid staked Bitcoin and DeFi innovations like lstBTC. By addressing breaches of exclusivity and misuse of resources, the ruling reinforces accountability in crypto collaborations. As arbitration proceeds in the Cayman Islands, stakeholders should monitor developments closely, as outcomes could influence future yield products and investor protections in the blockchain ecosystem.

The Grand Court of the Cayman Islands’ decision, delivered by Honourable Justice Jalil Asif KC, underscores the judiciary’s role in upholding commercial agreements within the cryptocurrency sector. Core Foundation’s claims detail how their “significant financial and technical investments” fueled Maple’s expansion, yet allegedly enabled the creation of syrupBTC, a direct competitor. This development raises questions about the balance between innovation and contractual fidelity in decentralized finance.

Prior to the partnership, Maple Finance managed assets under $500 million, a figure that grew through the success of the Bitcoin Yield offering rebranded as lstBTC. Core Foundation emphasized their efforts to ring-fence Bitcoin holdings, stating in their public statement that they ensured “Bitcoin lenders would not face adverse consequences due to the actions of Maple.” This protective structure involved reputable custodians and hedging mechanisms, such as put options to mitigate CORE token fluctuations.

The allegations intensified when Core Foundation discovered Maple’s pivot toward syrupBTC during the latter half of 2025’s first quarter. According to the foundation, this not only violated the exclusivity terms but also diverted resources meant for lstBTC. In response, Core honored multiple put option expiries, disbursing millions, before seeking the injunction and issuing termination notices upon detecting these breaches.

The injunction’s scope is precise: it prohibits Maple from proceeding with syrupBTC launches or CORE token dealings without approval, recognizing that monetary damages alone could not remedy the competitive head start or token risks. Judge Asif KC’s ruling affirmed the injunction’s alignment with impending arbitration, scheduled to commence within 28 days, providing a jurisdictional basis under Cayman law.

Maple Finance has suggested potential impairments affecting Bitcoin lenders in their yield offering, prompting Core Foundation to counter that such claims are baseless given the secure custodial arrangements. The foundation’s legal team argued before the court that this “impairment” narrative reveals deeper issues in Maple’s operations, further justifying their protective measures for the community.

Experts in cryptocurrency law, such as those cited in industry analyses, note that such disputes are increasingly common as DeFi projects scale. A quote from a blockchain legal specialist highlights: “Exclusivity clauses are vital in crypto partnerships to prevent resource cannibalization, and courts like Cayman’s are well-equipped to enforce them swiftly.” This case exemplifies how traditional legal frameworks are adapting to blockchain’s unique challenges.

Core Foundation’s actions aim to prevent investors from inadvertently supporting a rival through subsidies tied to the original agreement. By halting these activities, the injunction preserves the value proposition of lstBTC, which continues to offer yield opportunities on Bitcoin without compromising security or liquidity.

Looking ahead, the arbitration process will delve deeper into the evidence of breach, potentially influencing how future crypto collaborations structure their intellectual property and exclusivity terms. For the broader market, this serves as a reminder of due diligence in partnerships, ensuring that innovations like liquid staked tokens benefit all parties equitably.