Mike Silagadze: Questions Asset Ownership Clause in KAST Terms of Service

ether.fi founder and CEO Mike Silagadze questioned the terms of service of KAST in a recent post. According to these terms, when users transfer cryptocurrency or stablecoins into KAST, it is considered as selling assets to KAST and users no longer retain ownership of those assets. The records displayed in the app are merely ledger entries denominated in US dollars and do not represent account balances, deposits, or stored currency value. KAST emphasizes that it is not a bank and user funds are not covered by deposit insurance. Both KAST and ether.fi Cash offer stablecoin payment and crypto card services, resulting in direct competition between the two.