Circle Wins Legal Fight over Heka's USDC Minting and Redemption Account
9 Articles
9 Articles
Circle wins legal fight over Heka's USDC minting and redemption account
Circle has secured a court-backed arbitration win after records made public in a Boston federal court detailed why the stablecoin issuer suspended Heka Funds’ USDC minting and redemption services over suspected market manipulation involving Tether. Court filings submitted by Circle…
Key Points of the News: In May 2023, Tether held a cumulative position of $504.6 million in the Elysium fund of Heka, a figure that amounted to $800 million at the time of the arbitration. Circle executed the total suspension of the services of issue and redemption of the Heka account on December 1, 2023, covered by the main services agreement. The arbitrator of the case rejected a request from Circle for $5.15 million in fees, but granted $166,…
Circle defeats Tether-backed Heka Funds' $49M USDC arbitration claim
An arbitrator has rejected a $49 million damages claim brought by Heka Funds, a Malta-based trading firm financially tied to Tether, over Circle’s decision to ban it from redeeming USDC. The filings became public in a Boston federal court on Tuesday, after Circle moved to confirm the private arbitration award. What did Circle accuse Heka of doing? Circle suspended Heka in December 2023, after suspecting that the fund was trading in a way that he…
Circle Dispute With Tether-Backed Fund Comes Into Focus
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. Acc…
How Circle Blocked a Tether-Backed Fund During SVB Collapse
Summary: The documents outline why Circle suspended Heka Funds’ access to USDC redemptions during the banking turmoil. The arbitrator concluded […] The post How Circle Blocked a Tether-Backed Fund During SVB Collapse appeared first on CoinsPress.
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