Users discover KAST's Terms of Service treat deposits as sales to KAST. The controversy was amplified by Mike Silagadze's post calling KAST a 'scam,' prompting users to withdraw funds.

Users discover KAST's Terms of Service treat deposits as sales to KAST. The controversy was amplified by Mike Silagadze's post calling KAST a 'scam,' prompting users to withdraw funds.
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Calling a top-up a “sale” turns the card balance into unsecured fintech credit risk, not just a custody nuance; that is the title problem Celsius, BlockFi, and FTX customers learned to read in bankruptcy court. KAST’s marketing says “your balance and deposits are unlimited,” while the ToS says the app records only a USD ledger reference, not an account balance, deposit, or stored value. This matters because KAST says it has more than 1M users and close to $5B in annualized transaction volume.

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