New York court hears $15 million loan fight involving Ostium after $23.75 million exploit

  • ESS Frontier and Minghui Zheng seek arbitration in a $15 million dispute involving Ostium.
  • Ostium's public OLP vault lost 23,752,746 USDC during the July 15 exploit.
  • Judge Lewis A. Kaplan stayed the emergency restraint order before the September 17 hearing.

A Manhattan federal court is scheduled to hear legal arguments in a $15 million loan dispute involving Ostium, the onchain perpetuals exchange that lost 23,752,746 USDC from its public OLP vault in a July exploit. ESS Frontier LLC and Hong Kong-based lender Minghui Zheng seek to compel arbitration and obtain asset restraints against Ostium Foundation, affiliated entities, co-founder and CEO Kaledora Kiernan-Linn, and unnamed transferees. Judge Lewis A. Kaplan previously entered an emergency attachment and restraint order, then stayed it while setting the September 17 hearing. The proceedings will involve legal argument only, with no live testimony. Public filings do not establish whether a default occurred or how the vault loss legally affects the lenders' claims.

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