KAST Updates Deposit Terms After Public Dispute Over Stablecoin Ownership and Redemptions

KAST has updated its user deposit terms after a five-day public dispute between ether.fi CEO Mike Silagadze and KAST CEO Raagulan Pathy drew scrutiny to how the company treats customer stablecoin deposits. According to ChainCatcher, Silagadze shared screenshots indicating KAST’s terms characterized user-deposited stablecoins as being sold to KAST, with ownership transferring immediately to the company, and the earlier wording did not mention a user right to request redemption. The Defiant, using the Wayback Machine, verified that the terms remained in place at least through June 25. As of July 7, KAST’s updated terms add a user right to redeem unspent balances, while keeping the same legal structure: deposits are still defined as a sale, the company’s total liability is capped at $500, the entity is registered in Anjouan, Comoros, and the terms specify Seychelles law. Separately, KAST had previously promised that points would convert 1:1 into tokens, but changed this on July 2 to conversion into tokenized equity, prompting user dissatisfaction. Research account Decentralisedco said KAST’s structure allows the company to treat user stablecoins as corporate assets and potentially earn about 4% to 5% annualized yield on idle balances, contrasting with competitors such as ether.fi that settle via user-controlled smart contracts.