diff --git a/packages/fast-usdc/src/exos/settler.js b/packages/fast-usdc/src/exos/settler.js
index ac74679cc06..72f1e1f9626 100644
--- a/packages/fast-usdc/src/exos/settler.js
+++ b/packages/fast-usdc/src/exos/settler.js
@@ -166,11 +166,13 @@ export const prepareSettler = (
               this.state.mintedEarly.add(makeMintedEarlyKey(sender, amount));
               return;
 
-            case undefined:
             case PendingTxStatus.Observed:
             case PendingTxStatus.AdvanceFailed:
+              return self.forward(found.txHash, sender, amount, EUD);
+
+            case undefined:
             default:
-              return self.forward(found?.txHash, sender, amount, EUD);
+              log('⚠️ tap: no status for ', sender, amount);
           }
         },
       },
@@ -247,7 +249,7 @@ export const prepareSettler = (
           statusManager.disbursed(txHash);
         },
         /**
-         * @param {EvmHash | undefined} txHash
+         * @param {EvmHash} txHash
          * @param {NobleAddress} sender
          * @param {NatValue} fullValue
          * @param {string} EUD
@@ -275,7 +277,7 @@ export const prepareSettler = (
          * @param {SettlerTransferCtx} ctx
          *
          * @typedef {{
-         *   txHash: EvmHash | undefined;
+         *   txHash: EvmHash;
          *   sender: NobleAddress;
          *   fullValue: NatValue;
          * }} SettlerTransferCtx
diff --git a/packages/fast-usdc/test/exos/settler.test.ts b/packages/fast-usdc/test/exos/settler.test.ts
index d4c82a7652b..c970f55eaed 100644
--- a/packages/fast-usdc/test/exos/settler.test.ts
+++ b/packages/fast-usdc/test/exos/settler.test.ts
@@ -79,6 +79,7 @@ const makeTestContext = async t => {
     feeConfig: common.commonPrivateArgs.feeConfig,
     vowTools: common.bootstrap.vowTools,
     chainHub,
+    log,
   });
 
   const defaultSettlerParams = harden({
@@ -307,7 +308,6 @@ test('Settlement for unknown transaction', async t => {
     peekCalls,
     inspectLogs,
   } = t.context;
-  const { usdc } = common.brands;
 
   const settler = makeSettler({
     repayer,
@@ -319,22 +319,19 @@ test('Settlement for unknown transaction', async t => {
   void settler.tap.receiveUpcall(MockVTransferEvents.AGORIC_PLUS_OSMO());
   await eventLoopIteration();
 
-  t.log('USDC was forwarded');
+  t.log('Nothing was transferrred');
   t.deepEqual(peekCalls(), []);
-  t.deepEqual(accounts.settlement.callLog, [
+  t.deepEqual(accounts.settlement.callLog, []);
+  t.like(inspectLogs(), [
+    ['config', { sourceChannel: 'channel-21' }],
+    ['upcall event'],
+    ['dequeued', undefined],
     [
-      'transfer',
-      {
-        chainId: 'osmosis-1',
-        encoding: 'bech32',
-        value: 'osmo183dejcnmkka5dzcu9xw6mywq0p2m5peks28men',
-      },
-      usdc.units(150),
+      '⚠️ tap: no status for ',
+      'noble1x0ydg69dh6fqvr27xjvp6maqmrldam6yfelqkd',
+      150000000n,
     ],
   ]);
-  t.deepEqual(inspectLogs(0), [
-    '⚠️ Forwarded minted amount 150000000 from account noble1x0ydg69dh6fqvr27xjvp6maqmrldam6yfelqkd before it was observed.',
-  ]);
 });
 
 test.todo("StatusManager does not receive update when we can't settle");