Lava, a lender dealing in USD and stablecoins with Bitcoin as collateral, is under fire on social media for allegedly exerting excessive control over users' funds. Critics accuse the company of forcing users to migrate from Bitcoin DLCs to a hybrid custody model. In response, Lava denies any wrongdoing, asserting that users agreed to the updates.Founder Shehzan Maredia addressed the complaints, admitting that some loan rates might be higher than initially advertised. Lava also refutes accusations of money transmission, arguing that the distinction between custodial and non-custodial services is not clear-cut but rather a spectrum.