Key Takeaways
- A partnership between Core Foundation and Maple Finance has collapsed into a legal dispute.
- The two organizations co-developed lstBTC, but Core claims Maple misused project resources to create a rival product.
- Core DAO has also raised the alarm about Maple’s alleged move to write down the value of Bitcoin deposited in the lstBTC pilot.
A partnership between Bitcoin (BTC) sidechain developer Core DAO and Maple Finance has collapsed into a high-stakes legal confrontation.
After Core Foundation filed a lawsuit against Maple, the two organizations are now locked in a dispute over exclusivity, intellectual property, and the fate of more than $150 million in user-deposited Bitcoin.
Core-Maple Partnership Breaks Down
In early 2025, Core Foundation and Maple Finance partnered to build lstBTC, a Bitcoin-backed liquid staking token on the Core blockchain.
However, the relationship has soured significantly since the project was announced in February.
On Oct. 30, a Cayman Islands court had granted an injunction preventing Maple from releasing syrupBitcoin—an alternative BTC yield product, which the lawsuit claims violates the two parties’ lstBTC agreement.
The complaint alleges that Maple abused the terms of the partnership and violated a 24-month exclusivity clause by utilizing Core Foundation’s resources to develop syrupBTC, according to Core DAO’s statement on Wednesday.
Determining that there was a “sensible factual basis” to grant an injunction, Justice Jalil Asif ruled that Maple’s alleged infractions present “a serious issue to be tried.”
Core Claims Bitcoin Deposits at Risk
According to Core, the dispute escalated when Maple said it would need to declare impairments on over $150 million worth of Bitcoin deposited in the lstBTC pilot.
This, the DAO claims, runs against assurances Maple provided the Foundation that all Bitcoin would be held in ring-fenced, bankruptcy-protected custody structures.
“The legal protections that were introduced by Core Foundation as part of Maple’s Core-powered BTC Yield offering are designed to protect lenders’ rights and assets,” Core Initial Contributor Rich Rines told CCN.
“Maple has no legal right to impair or penalize lenders’ Bitcoin under the structure that Core Foundation mandated,” he added
Core DAO frames Maple’s write-down as an inexplicable and alarming red flag.
A simple question underpins the dispute: Why declare an impairment if the Bitcoin is readily available to return to lenders?
In response to the lawsuit, Maple denied any allegations of wrongdoing and claimed Core Foundation’s actions “are directly against lender interests.”
Rines stated that “frankly, we are disappointed by Maple’s response as it lacks detail, directness, and legal standing.”
“However, we are not surprised at this point due to the conduct of Maple’s leadership over the past few months,” he added.
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James Morales is CCN’s blockchain and crypto policy reporter. He has been working in the news media since 2020, writing about topics such as payments, banking and financial technology. These days, he likes to explore the latest blockchain innovations and the evolving landscape of global crypto regulation.
With an educational background in social anthropology and media studies, James uses his platform as a journalist to explore how new technologies work, why they matter and how they might shape our future.
