Ostium defaulted on a ~$15M crypto loan from a Hong Kong lender; federal court hearing scheduled in New York.
Regulation & Gov ·
Ostium defaulted on approximately $15 million borrowed from Hong Kong-based lender Minghui Zheng after a $24 million hack in July, prompting a federal lawsuit filed in New York in September 2026. The lender, operating under the entity ESS Frontier LLC, sued multiple Ostium-related defendants seeking to compel arbitration, with filings that included an emergency motion for a temporary restraining order. Ostium's legal team obtained a stay of the restraining order, and a hearing is scheduled for September 17 where the judge may hear live testimony from the lender and other parties involved.