Bitcoin‘s price has been navigating rough waters, recently wiping out $9,000 after a spike to $49,000 following the approval of a spot Bitcoin ETF. The excitement for Grayscale’s potential ETH ETF decision has waned due to a delay in Fidelity’s case. Meanwhile, Coinbase’s Chief Legal Officer, Paul Grewal, accused a government agency of failing to conduct proper research in its crypto-related report, which suggested that cryptocurrencies facilitate sanctions evasion.
Coinbase’s Grewal criticized the U.S. Government Accountability Office for its report, which lacked detailed analysis and was seen as an example of the government’s hasty and biased actions. In contrast, earlier reports indicated that countries like Iran were not circumventing sanctions using crypto as much as feared.
Terra, whose founder is imprisoned and ecosystem collapsed, has filed for Chapter 11 bankruptcy with estimated liabilities between $100-500 million. The CEO of Terraform Labs, Chris Amani, emphasized the community’s resilience and the necessity of the bankruptcy to continue working towards collective goals despite legal challenges.
Grayscale Bitcoin Trust (GBTC) experienced a significant asset reduction, with a $5 billion decrease in managed assets between January 10 and 18, according to YChart and Grayscale data. However, the impact of these outflows is expected to diminish over time as other ETF reserves grow.
These developments indicate a tumultuous period for cryptocurrencies, with legal scrutiny, market volatility, and challenges for major players like Terra and Grayscale.