Circle suspended Heka Funds over suspected market manipulation after learning Tether had invested $800 million in the arbitrage fund.

Circle banned Tether-backed Heka Funds over market manipulation concerns and won a $49 million arbitration claim, escalating the USDC-USDT stablecoin

Circle suspended Tether-linked Heka Funds in December 2023 over USDC manipulation. An arbitrator rejected Heka's $49M claim, citing hidden Tether ties.

Circle suspended Heka Funds over suspected market manipulation after learning Tether had invested $800 million in the arbitrage fund.