KAST User Terms Spark Controversy, ether.fi CEO Claims Fraud

The public dispute between ether.fi CEO Mike Silagadze and KAST CEO Raagulan Pathy centers around KAST's user deposit terms. Screenshots released by Silagadze show that KAST's terms treat users' deposited stablecoins as sales, with ownership immediately transferred to the company, and there is no mention of users being able to request redemption. It has been verified that this term was in effect at least until June 25. KAST updated its terms on July 7, adding users' rights to redeem unspent balances, but deposits are still defined as sales, with the company's total liability capped at $500, registered in Comoros' Anjouan Island, and governed by Seychelles law. Additionally, KAST initially promised a one-to-one exchange of points for tokens, but on July 2 changed this to conversion into tokenized equity, causing dissatisfaction among users. Research account Decentralisedco pointed out that KAST could earn about 4-5% annual returns from idle balances by counting users' stablecoins as company assets, a structure that differs from competitors like ether.fi, which settle through user-controlled smart contracts.