KAST Faces Backlash Over Terms Claiming Ownership of User Deposits

KAST's ToS clause transferring crypto ownership to the firm sparks criticism from Ether.fi CEO Mike Silagadze. KAST clarified redemption rights but retained ownership, fueling debate on asset protection.

Woofun AI reports that stablecoin payment platform KAST is encountering significant criticism regarding its terms of service, specifically a clause asserting company ownership of user-deposited cryptocurrency. Ether.fi CEO Mike Silagadze highlighted that this structure contradicts self-custody principles, prompting a broader debate on legal frameworks in the stablecoin sector.

In response, KAST updated its terms to clarify that unused balances are redeemable at any time, though the company retains legal ownership during the deposit period. Critics argue this distinction fails to mitigate risks associated with insolvency or legal disputes. The controversy coincides with user dissatisfaction over KAST converting points into an equity-linked product rather than a token.