KAST, a stablecoin payment and crypto card platform, is facing scrutiny after ether.fi CEO Mike Silagadze raised concerns about its terms of service. According to the terms, when users transfer cryptocurrencies or stablecoins to KAST, the assets are considered sold to KAST, and users lose ownership. The app only shows a ledger record in US dollars, which does not represent an account balance or stored value. KAST also clarifies it is not a bank, and user funds lack deposit insurance protection.
The controversy arises as both KAST and ether.fi Cash, which also provides stablecoin payment and crypto card services, are in direct competition. Silagadze's comments highlight potential risks for users regarding asset ownership and protection under KAST's current terms.
KAST's Terms of Service Raise Concerns Over User Asset Ownership
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