Arca exec writes scathing letter to Circle post-IPO

Circle is facing criticism from Jeff Dorman, chief investment officer at digital asset investment firm Arca, over a $135,000 allocation to the company during the stablecoin issuer’s recent initial public offering.

In an open letter posted to social media, Dorman accused Circle and its leadership of poor judgment, calling the allocation “inappropriate” and announcing the closing of all Arca’s accounts with Circle.

According to Dorman’s post, Arca was granted only a $135,000 participation in its $10 million order on the offering. Dorman said Arca was one of the first entities to make an offer. The executive said the company is one of Circle’s earliest backers and held steady even amid rumors of Circle delaying its IPO plans due to the macroeconomic shock of tariffs. The letter read:

“Arca has been through hell and back like every other crypto-native firm for the last eight years. Most of us stick together and help each other. I cannot believe our efforts to help you grow for years culminated in you giving us a joke, throwaway allocation. You are the first and only crypto company that has ever treated Arca this way.”

“Most of Arca’s management team left Wall Street eight years ago to start a crypto-native company specifically to get away from TradFi clowns like you. Ironically, you’ve come full Circle,” the letter continued.

Dorman also said that Arca was closing all accounts with Circle and would discourage other companies from partnering with the stablecoin giant.

Circle made its public debut on June 5 after listing on the New York Stock Exchange (NYSE) and is considered by industry professionals to mark a significant milestone for the crypto sector, as the issuer of the second-largest stablecoin by market capitalization opens up to liquidity from traditional finance.

Circle raises IPO target twice during sale

Circle launched its IPO on May 27 and announced an initial target of 24 million shares, with the company issuing 9.6 million shares of Class A Common Stock and existing early investors providing the remaining 14.4 million shares.