The arbitration centered on Circle’s decision to suspend Heka Funds’ access to USDC redemptions during the Silicon Valley Bank turmoil.
The arbitrator found that Heka failed to disclose the extent of its financial relationship with Tether.
Heka’s $49 million damages claim was rejected, while Circle was awarded legal and expert costs.
The case highlights the importance of transparency and counterparty risk in institutional stablecoin markets.
According to the Financial Times, court filings made public this week shed new light on the private arbitration between Circle and Heka Funds, detailing the events that led the USDC issuer to suspend the fund’s redemption privileges during the 2023 Silicon Valley Bank turmoil.
The filings form part of Circle’s effort to have an arbitration award confirmed after proceedings concluded in February 2026. While the outcome was already known, the supporting documents disclose previously confidential evidence presented during the case.
Circle
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