Circle banned Tether-supported funds because of market manipulation concerns

Circle, concerned about market manipulation, banned the encryption fund Heka at the end of 2023. Circle accused Heka of using USDC arbitrage to help competitor Tether. During the Silicon Valley Bank crisis, Heka redeemed a large amount of USDC, transferring funds to Tether, leading Tether to expand on the cost of Circe. Heka then sued Circe, claiming that the injunction caused him to lose $49 million in profits, but the arbitrator ruled that Heka had acted improperly, supported Circe ' s position and awarded him legal fees。