Sources: Palmer Luckey-backed Erebor Bank ended its free stablecoin-to-cash redemption offer after trading firms like Wintermute exploited it for arbitrage (The Information)

Erebor Bank, backed by Palmer Luckey, discontinued its free stablecoin-to-cash redemption program after trading firms such as Wintermute used the offer for arbitrage. The bank’s policy change followed reports that these firms profited from the redemption loophole, prompting the institution to halt the service.