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Circle and Tether-backed Heka Funds in long-running market manipulation legal battle

$73 billion is the stated scale of Circle, the stablecoin group at the center of new court filings that detail an extended legal dispute with Heka Funds. The fund is backed by Tether. Market manipulation concerns drove the clash, according…

By Marcus Cole·Jul 14, 2026·1 min read·markets

$73 billion is the stated scale of Circle, the stablecoin group at the center of new court filings that detail an extended legal dispute with Heka Funds. The fund is backed by Tether. Market manipulation concerns drove the clash, according to the filings.

The Tether connection

Heka Funds carries Tether backing, placing Circle and a Tether-connected fund on opposing sides of active litigation. In a market where stablecoin issuers compete directly for dollar-peg volume, a legal conflict structured this way goes beyond a standard bilateral dispute.

Manipulation claims in this context implicate supply management and peg stability. Those questions extend beyond the named parties.

What the filings add

New court documents detail a legal battle described in the filings as long-running. Heka Funds and Circle are the named adversaries. The market manipulation basis is explicit. Circle's $73bn is the figure attached to the stablecoin group in the filings. The new documents extend a public record of a conflict already in motion before this round of disclosures.

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Key takeaways

Frequently asked

Who are the parties involved in the legal battle?

The named adversaries are Circle, the stablecoin group, and Heka Funds, a fund backed by Tether.

What is the basis of the dispute?

The filings explicitly cite market manipulation as the basis of the long-running legal battle.

How is Tether connected to the case?

Heka Funds carries Tether backing, which places Circle and a Tether-connected fund on opposing sides of the active litigation.

What figure is attached to Circle in the filings?

The filings attach a figure of $73 billion to Circle, the stablecoin group.

Is this a new conflict?

No, the filings describe a long-running battle and extend a public record of a conflict already in motion before this round of disclosures.