Woofun AI reports that an arbitrator dismissed all claims by Heka Funds against Circle regarding account freezing, determining the fund engaged in malicious behavior. The ruling orders Heka to pay approximately $166,000 in legal and expert fees to Circle.

Court documents reveal Circle froze Heka's account in late 2023, suspecting market manipulation via large-scale arbitrage during the SVB crisis. Heka, backed by $800 million from Tether, failed to disclose this support. The arbitrator found Heka aware that such concealment would raise concerns for Circle, leading to the dismissal of its $49 million profit loss claim.