Some partnerships in crypto feel like they’re sealed with a digital handshake and a shared belief in the future. Others, it turns out, are sealed with paper. And that paper can land you in court.
- The legal dispute centers on a collaboration between Core Foundation and Maple Finance over the lstBTC product, which has escalated into a court-ordered injunction in the Cayman Islands. Core alleges Maple misused joint venture resources to develop a competing product, syrupBTC, violating a 24-month exclusivity clause.
- The court granted the injunction due to the risk of Maple dumping CORE tokens and gaining an unfair market head-start with the allegedly infringing product, noting that monetary damages alone would be insufficient compensation.
- The conflict has real-world implications for users, as Core claims Maple declared impairments on deposited bitcoin after Core stopped certain price-protection payments, raising concerns about the safety of lenders’ assets.
That’s the hard lesson playing out between Core Foundation and the crypto lending platform Maple Finance. What began as a celebrated collaboration to create a new way to earn a return on bitcoin has devolved into a legal firefight, complete with a court-ordered injunction and public accusations of betrayal.
The Grand Court of the Cayman Islands has stepped in, hitting the pause button on Maple’s plans. It’s a stark reminder that even in the world of decentralized finance, old-world rules and old-world courts still hold sway.
This isn’t just a squabble between two companies. It’s a story about trust, trade secrets, and what happens when a lucrative idea becomes a point of contention. And caught in the middle, as always, are the users whose funds are tied up in the machinery.
A Plan for Productive Bitcoin
Let’s rewind to early 2025. Core Foundation and Maple Finance announced a partnership that made perfect sense on paper. The goal was to build a product called lstBTC. The idea was simple, yet powerful. It would let bitcoin holders earn a return, or yield, on their assets without giving up custody.
For many in the bitcoin community, this is the holy grail. You get to put your digital gold to work, but you never hand over the keys to your vault. The partnership was announced with fanfare in February at an event in Hong Kong. The market was ready.
Core Foundation says it put its money where its mouth was. In a post on X, the foundation stated it made “significant financial and resource-intensive investments in the technical development, marketing, promotion, and subsidies of the product.” They weren’t just a silent partner. They were funding the engine.
When lstBTC launched in April, it was a hit. Core claims its success led to “explosive growth” for Maple. Everything seemed to be going according to plan. The numbers were up, the concept was proven, and the partnership looked like a win for everyone.
But behind the scenes, the relationship was apparently souring.
The Syrup Thickens
According to Core, something changed around the middle of the year. They allege that Maple, while still taking Core’s capital and using its resources, began quietly working on a rival product. This new offering was to be called syrupBTC.
Core claims this wasn’t just healthy competition. They accuse Maple of misusing confidential information and work product from their joint venture to build this competitor. It’s like sharing the secret recipe for your famous sauce with a partner, only to find them scouting locations for their own restaurant next door.
The partnership agreement, Core says, included a 24-month exclusivity clause. This was meant to prevent exactly this kind of scenario. You build something together, you grow it together, and you don’t compete with each other for a set period. Core felt that line had been crossed.
So they took their grievance to court.
Core Foundation has been granted an injunction against Maple Finance by the Grand Court of the Cayman Islands. This injunction blocks Maple from launching a competing Bitcoin yield product and restricts its dealings involving the CORE token, pending arbitration.
Read more below: pic.twitter.com/q8L1X1HnZJ
— Core DAO (@Coredao_Org) May 22, 2025
The Honorable Justice Jalil Asif KC of the Grand Court found that there was a “serious issue to be tried.” This is court-speak for “there’s enough smoke here to suggest we should look for a fire.” The court granted Core’s request for an injunction, a legal order that temporarily halts a specific action.
The order blocks Maple from launching its competing product. It also restricts how Maple can handle Core’s native token. The court reasoned that simply paying damages later wouldn’t be enough to fix the potential harm. Why? Two key reasons.
First, the court noted “the risk of Maple dealing in or shedding CORE tokens.” A sudden sell-off could crater the token’s price, hurting the entire Core ecosystem. Second, there was “the head-start Maple would gain by launching a competing product.” You can’t easily put a dollar figure on that kind of market advantage, especially when it’s allegedly built on a partner’s work.
Maple’s Defense
Maple Finance, for its part, sees things very differently. They deny any wrongdoing and paint Core’s legal action as a move that ultimately harms the very users they are supposed to serve.
In their own post on X, Maple stated they would fight the allegations. “Maple denies any allegations of wrongdoing on its part and will be pursuing all available remedies aggressively to ensure Core Foundation is held responsible for the consequences of their actions,” the company wrote.
They also assured the public that their broader business operations remain functional. This is standard crisis communication. It’s meant to calm nerves and project stability while the lawyers sharpen their knives.
Today, Core Foundation has taken actions that go against the interests of Lenders in the Core-sponsored pool on Maple.
Maple denies any allegations of wrongdoing on its part and will be pursuing all available remedies aggressively to ensure Core Foundation is held responsible for… pic.twitter.com/f233f2sX0K
— Maple (@maplefinance) May 22, 2025
The stage is now set for arbitration, a private process where both sides will argue their case before a neutral third party. But the court case has already surfaced another troubling issue, one that directly affects lenders on the platform.
Core Foundation accused Maple of creating lender risk. They claim Maple declared impairments on millions of dollars worth of deposited bitcoin. This happened after Core, citing the alleged contract breaches, stopped making certain price-protection payments.
This is where the corporate dispute gets very real for everyday users. An “impairment” is a word no lender wants to hear. It suggests the assets they deposited may not be whole anymore.
Core is pressing the point. “It is unclear why Maple maintains that they are unable to return the Bitcoin to their lenders at this time, or if they have the right to impair them,” the foundation said. They called it “another example of concerning behavior and business practices by Maple.”
So, where does that leave the people who put their bitcoin into the system, trusting it would be safe and productive? That question now hangs in the air, unanswered.
The injunction is a temporary measure. The real fight will happen in arbitration. But the damage to the partnership is already done. And the case serves as a cautionary tale for the entire DeFi space. Promises are good. Code is better. But sometimes, a very clear, very enforceable legal contract is best of all.
