Key Highlights
- A court in The Cayman Islands halts Maple’s syrupBTC launch as Core accuses it of breaching lstBTC partnership, misusing confidential data, and risking lender Bitcoin.
- Core says Maple used partnership funds and support while building a rival product, raising concerns over exclusivity and unfair competitive advantage.
- Despite Maple’s claims, Core questions why lenders’ Bitcoin can’t be returned, highlighting risks tied to asset segregation and earlier assurances.
A growing rift between Core Foundation and Maple Finance has reached a turning point after a Cayman Islands court blocked Maple from rolling out its new syrupBTC product. Core argues that Maple broke their agreement surrounding the development of lstBTC, the Bitcoin yield product they built together.
The court stepped in as the two companies continued to clash over the handling of confidential information, the exclusivity terms they agreed to, and who should control the next phase of the project.
Core Foundation says Maple used its confidential data while still accepting money and technical support under the partnership. The judge also pointed out that the agreement helped Maple bring in more than $150 million in client Bitcoin earlier this year.
The judge also warned that Maple could gain an unfair head start by moving ahead with a competing product. As a result, the order bars Maple from launching or promoting syrupBTC and limits any handling of CORE tokens unless Core Foundation signs off in writing.
Partnership context and growth phase
Core Foundation says the partnership started in early 2025 with a straightforward plan. Both sides wanted to build lstBTC, a liquid staked Bitcoin product that relied on well-known custodians like BitGo to keep assets secure. Core adds that it put in money, engineering support, and outreach efforts to get the project moving. The collaboration also drew positive attention when the two unveiled it at Consensus Hong Kong in February 2025..
Maple managed under $500 million in assets at the time. However, the early Bitcoin yield offering triggered rapid growth for the company. Core Foundation stated that Maple benefited from strong revenue traction once the program started in April 2025. The success also demonstrated market demand for a Core-powered BTC yield product. Core Foundation now believes that this early momentum encouraged Maple to develop a competing product.
Dispute over confidential information and exclusivity
Tensions escalated by mid-2025, when Core Foundation alleged that Maple started developing syrupBTC using confidential information and work product that originated from the lstBTC collaboration. Furthermore, Core Foundation argued that Maple violated a 24-month exclusivity agreement that restricted the creation of rival products.
Justice Jalil Asif KC determined that the allegations raised serious issues. The court also stated that damages would not fully address the conflict. Consequently, the judge noted the potential risk of Maple dealing in CORE tokens and the competitive advantage Maple could gain through an early syrupBTC launch. Hence, the injunction placed strict limits on Maple’s actions until arbitration concluded.
Lender exposure questions
The issue widened after Maple informed lenders about possible impairments. Core Foundation stated that Maple previously represented that all Bitcoin sat in bankruptcy-remote portfolios at licensed custodians. Hence, the assets should remain segregated and protected from unrelated Maple risks. Core Foundation added that the design relied on hedging tools, including put options, to shield lender positions from CORE price movements. It also funded these protections until the dispute escalated.
Core Foundation said it doesn’t understand why Maple now claims it can’t return Bitcoin to lenders. The group called Maple’s move “concerning” and said it contradicts the earlier assurances about keeping the assets safe.
Maple responded with a public statement, “Maple Finance stands firmly in defense of lender rights and confirms there is no impact to our broader business operations.” Maple added, “Core Foundation’s actions are directly against lender interests.” The firm stated it will pursue all available remedies.
This dispute shows how easily things can go wrong behind the scenes in crypto yield products. It also reminds people that legal and custody decisions can directly affect what happens to their assets.
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