🚨CIRCLE BANNED TETHER-BACKED FUND OVER MARKET MANIPULATION CONCERNS New court filings reveal that Circle blocked crypto fund Heka in late 2023 after suspecting it was exploiting USDC arbitrage to benefit rival stablecoin issuer Tether during the Silicon Valley Bank crisis. Circle alleged that Heka, backed by an $800 million investment from Tether, was redeeming unusually large amounts of USDC and funneling dollars into Tether, helping the stablecoin giant expand at Circle’s expense. Heka later sued Circle, claiming the ban cost it $49 million in profits, but an arbitrator ruled in Circle’s favor, finding that the fund had acted in bad faith and awarding Circle legal costs.(Coin Bureau)