Circle suspended Heka Funds' minting and redemption services in December 2023 after concluding the Malta-based arbitrage fund may have been manipulating the market to benefit Tether, its largest competitor, according to arbitration documents made public in a Boston federal court on Tuesday.
The filings, submitted as part of Circle's petition to confirm a February arbitration award, lay out how the issuer behind the $73 billion (USDC) came to suspect that the company behind (USDT) was engineering a customer's trading.
Retired judge Robert L. Dondero, the arbitrator, sided with Circle on the remaining contract claims.
The disclosure Circle says it never got
Heka, managed by London-based Abraxas Capital Management, opened a free Circle account in January 2022 for its Elysium Global Arbitrage Fund. Circle later determined that Tether was the fund's dominant backer.
