Woofun AI reports that ether.fi CEO Mike Silagadze publicly accused KAST of fraud following a five-day dispute over user deposit terms. Screenshots revealed that KAST’s terms, active since June 25, classified deposited stablecoins as sold to the company, transferring ownership immediately without mentioning redemption rights. Although KAST updated its terms on July 7 to include redemption for unspent balances, the legal structure remains unchanged, defining deposits as sales with total liability capped at $500. The protocol is registered in Comoros and governed by Seychelles law.

Additionally, KAST altered its promise from one-to-one token exchange to tokenized equity conversion on July 2, drawing user dissatisfaction. Research account Decentralisedco noted that KAST earns approximately 4-5% annualized returns on idle balances by treating them as company assets, contrasting with competitors like ether.fi that use user-controlled smart contracts.