Woofun AI reports that an arbitrator rejected all claims by crypto fund Heka Funds, ordering the entity to pay Circle approximately $166,000 in legal and expert fees. The ruling determined that Heka engaged in malicious behavior by failing to disclose its relationship with Tether, which held about 75% of the fund's assets through an $800 million investment. Circle had banned Heka at the end of 2023, suspecting the fund used large-scale arbitrage during the SVB crisis to buy discounted USDC and redirect funds to support Tether's market share. Heka sought $49 million in compensation for lost profits but denied any market manipulation or regulatory issues. Circle declined to comment, while Tether did not respond to media inquiries.