Last week witnessed significant developments in the cryptocurrency space, with Terraform Labs founder Do Kwon making headlines amidst a downturn in spot Bitcoin ETFs, while Ethereum encountered increasing regulatory scrutiny.
Do Kwon’s Legal Saga Unfolds
The legal saga surrounding Terraform Labs founder Do Kwon took a new turn as a court in Montenegro denied his appeal against extradition to South Korea. Although Montenegro’s prosecutor’s office condemned the extradition decision as unlawful, reports later indicated a potential halt to Kwon’s extradition. Ultimately, on March 23, Kwon was released from prison, albeit with his passport confiscated, following the completion of his sentence for possessing illegal documents.
Market Turbulence Grips Investors
Investors faced turbulence as the market continued its bearish trajectory from the previous week. Bitfinex highlighted cautious sentiment among traditional investors, reflected in sustained bearish consolidation. The global cryptocurrency market witnessed a $140 billion loss, with Bitcoin leading the decline with a 4% price dip, closing the week at $65,000. Despite this, industry leaders like Binance CEO Richard Teng remained optimistic, predicting Bitcoin’s potential breach of the $80,000 mark. MicroStrategy’s acquisition of an additional 9,245 BTC further underscored confidence in the asset.
Spot Bitcoin ETFs Experience Outflows
Spot Bitcoin ETFs, which saw record inflows of $2.9 billion the previous week, faced significant outflows amidst Bitcoin’s continued decline. Data from Bloomberg revealed outflows totaling $742 million from March 18 to 20, followed by consecutive outflows of $93.8 million and $51 million on March 21 and 22, respectively. These outflows coincided with an 8% drop in the broader crypto market, resulting in a $220 billion loss in the global crypto market cap.
Regulatory Scrutiny Intensifies for Ethereum
Ethereum encountered heightened regulatory scrutiny as reports surfaced of an investigation into the Ethereum Foundation by a “state authority.” While details remain limited, speculation suggests a connection to the impending launch of Ethereum spot ETFs. Additionally, the U.S. SEC delayed decisions on spot Ethereum ETF filings by VanEck and Grayscale, extending the deadlines to May 23 and May 30, respectively.
Global Regulatory Crackdowns Continue
Global regulatory affairs witnessed renewed activity, with South Korean authorities arresting the issuer of an altcoin over fraud allegations amounting to $16.1 million. British authorities also apprehended Wen Jian, a British citizen, in connection to a $6 billion Chinese scam. These developments underscore ongoing efforts to address regulatory concerns and enforce compliance within the cryptocurrency space.
