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ChainCatcher message, bearish sentiment dominates the crypto market, with Bitcoin and Ethereum continuing their downward trend. In the past 24 hours, Bitcoin has fallen about 2.4% to around $66,900, while Ethereum has dropped about 2.7% below the $2,000 mark.On the macro front, the US dollar has weakened, and US Treasury yields have declined, leading to increased market expectations for a rate cut by the Federal Reserve. The Polymarket shows that the probability of a rate cut in March has risen from 7% at the beginning of the month to about 19%, while the Kalshi market is around 21%. In the derivatives market, BTC futures open interest has decreased to $15.6 billion, indicating a continued deleveraging trend, with funding rates turning negative (around -6% on Binance and about -0.5% on Bybit). The three-month basis has narrowed to 1.6%, reflecting a rapid cooling of institutional risk appetite.

According to Coindesk, the U.S. District Court for the Eastern District of New York sentenced former SafeMoon CEO Braden John Karony to 8 years in prison this Tuesday. Braden was found guilty of multiple federal charges last year for committing fraudulent acts against investors in his digital asset business.According to the U.S. Department of Justice's allegations, Karony was involved in manipulating the price of SafeMoon tokens and stole millions of dollars through illegal liquidity control of the company. After a three-week trial, he was convicted of conspiracy to commit securities fraud, wire fraud, and money laundering. Co-conspirator Thomas Smith pleaded guilty to conspiracy to commit securities fraud and wire fraud in February 2025 and has not yet been sentenced. Another alleged co-conspirator in the SafeMoon fraud case, Kyle Nagy, is still wanted by authorities.It is reported that SafeMoon (SFM) is a cryptocurrency token launched in March 2021, born during the last bull market's meme coin and DeFi craze. Its tokenomics stipulate a 10% tax on each transaction, with a portion (usually 5%) automatically distributed to all holders, another portion added to the liquidity pool, tokens burned to create deflation, and a part allocated for project development. The design concept is to "encourage holding and punish selling," allowing holders to passively earn tokens, with hopes that the price can "safely go to the moon." Its market cap once reached $1 billion, attracting a large number of retail investors and FOMO players. Subsequently, the project contract was hacked, the team was accused of fraud, manipulating liquidity, and misappropriating funds. After a prolonged decline, its current market cap is only $2.08 million.

YZi Labs issued a letter to the board of CEA Industries stating that CEA Industries' claim of a "secret agreement" with YZi Labs is completely false. The board was already aware of the contents of the agreement, and the law firm Winston & Strawn also provided advice, with board members Alexander Monie, Hans Thomas, and then-CEO of 10X Capital Namdar being involved throughout. The so-called "secret" is merely a misleading statement to the public.The request by CEA to terminate the Strategic Services Agreement (SSA) is equally absurd. YZi Labs terminated the agreement on December 11, 2025, and formally notified the board in writing on December 13. The SSA did not result in any payments and does not affect the negotiations of the 10X asset management agreement.The board is attempting to cover up the facts under the guise of an "investigation," concealing their inaction regarding known circumstances. YZi Labs calls on the board to immediately clarify the misleading statements, fully disclose the related party transactions involving Hans Thomas, and effectively safeguard shareholder interests.

According to Jinshi, U.S. Treasury Secretary Yellen stated that the Federal Reserve, under the leadership of Kevin Walsh, will remain vigilant to ensure that the timing of policies does not become misaligned.

According to the disclosure by the WeChat public account of the Internet Information Office of Jiangmen, the Kaiping City Procuratorate is handling a "money laundering" case involving virtual currency. The criminal gang received funds from telecom network fraud and other criminal proceeds, which were then arranged to be withdrawn from the bank and exchanged for virtual currency to be transferred to upstream fraudsters. In just two months, the amount of fraud-related funds transferred exceeded 2 million yuan.Currently, 19 individuals involved in the case have been sentenced by the Kaiping City Court for the crime of concealing and disguising criminal proceeds.

According to Cointelegraph, the Bitcoin market sentiment index has fallen to an all-time low, with some contrarian investors believing that $60,000 may have become the bottom of this cycle.Data shows that the cryptocurrency fear and greed index dropped to a historical low of 7 over the weekend, indicating that the market is in a state of "extreme fear." Michaël van de Poppe, founder of MN Capital, pointed out that this indicator, along with the relative strength index, shows that the market is deeply oversold, a similar situation occurred during the 2018 bear market and the pandemic crash in March 2020, which may create conditions for a rebound.CoinGlass's liquidation heatmap shows that if the Bitcoin price rises by about $10,000, it could trigger the liquidation of over $5.45 billion in short positions, while a drop to $60,000 would only trigger $2.4 billion in liquidations. This imbalance may drive a short covering rally. However, structural risks in the market still exist.CryptoQuant data shows that Bitcoin is still far below its 50-day and 200-day moving averages, with a price Z-score of -1.6, indicating that it remains in a phase dominated by selling pressure. The net buying volume in the derivatives market has turned negative, and the Binance buy-sell ratio has also fallen below 1, showing strong selling pressure in the futures market.Analysts point out that stronger spot demand is needed to trigger a sustained rebound. From a longer-term perspective, historical data shows that Bitcoin bear market bottoms typically form below the 0.618 Fibonacci retracement level, which is currently around $57,000. If history repeats itself, the downside scenario could extend to $42,000.

The U.S. Department of Justice announced that a man named Daren Li, who holds dual citizenship in China and Saint Kitts and Nevis, was sentenced in absentia to the maximum statutory sentence of 20 years in prison, along with 3 years of supervised release, by the U.S. District Court for the Central District of California on February 9 local time, for his involvement in a global cryptocurrency investment fraud scheme involving over $73 million.The Department of Justice stated that the 42-year-old Li pleaded guilty in November 2024, admitting to participating in a transnational cryptocurrency investment fraud and money laundering conspiracy operating from a scam hub in Cambodia. However, he fled after cutting off his electronic ankle monitor in December 2025 and is currently still at large.Prosecutors revealed that the fraud ring actively contacted victims through social media, phone calls, text messages, and online dating platforms to establish "professional or romantic relationships" to gain trust, and used fake cryptocurrency trading platforms and phishing websites to lure victims into investing in false projects. In some cases, they also impersonated customer service or technical support personnel, deceiving victims into transferring funds or moving cryptocurrency assets under the pretext of "fixing viruses."According to the plea agreement, Li and his accomplices caused at least $73.6 million in victim fund losses, of which $59.8 million was laundered through U.S. shell company accounts and further converted into cryptocurrency to conceal the sources and flows of the funds. Li was found to have directly participated in the final receipt and control of the victim funds.So far, 8 accomplices have pleaded guilty, and Li is the first defendant to be sentenced for directly receiving the illicit funds. The case is being investigated by the U.S. Secret Service with assistance from law enforcement agencies in multiple countries. The U.S. Department of Justice stated that it will continue to promote international cooperation in an effort to extradite Li back to the U.S. to serve his sentence.

According to Arkham data, at 19:07, 197.06 BTC (worth approximately 13.56 million USD) was transferred from one anonymous address (starting with bc1qhmc6c...) to another anonymous address (starting with bc1qetudm...). Subsequently, that address transferred a portion of the BTC (97.06 BTC) to another anonymous address (starting with bc1q6yss4...).

Google's global "crypto" search volume is currently hovering near an annual low of 30/100 (with 100 representing the highest search interest), reflecting weak investor sentiment. The total market capitalization of the crypto market has fallen from a historical high of over $4.2 trillion to about $2.4 trillion, and market trading volume has plummeted from $153 billion on January 14 to $87.5 billion on Sunday.The Crypto Fear and Greed Index hit a historical low of 5 last Thursday, and slightly rebounded to 8 on Sunday, still in the extreme fear range. This is the lowest level since the collapse of the Terra ecosystem and its dollar-pegged stablecoin in 2022. At that time, the Terra collapse triggered a wave of liquidations, accelerating the bear market of 2022.

The cryptocurrency market has experienced a phase of recovery after a sharp sell-off, rebounding above $65,000 after hitting a low point, while Ethereum has risen from around $1,750 to near $1,900.On a macro level, the overall pressure on risk assets remains the main backdrop. Recently, technology stocks have weakened, and there has been a decline in risk appetite, while precious metals and crypto assets have fluctuated in sync, further exacerbating the market's deleveraging process. However, panic sentiment has not completely dissipated. Previously, the options market saw extreme protective buying, with some traders even positioning for put options with strike prices as low as $20,000, indicating that the market is still hedging against extreme tail risks.Overall, this round of sharp decline reflects more of a phase of recovery after the clearing of leverage and a contraction in risk appetite. A short-term technical rebound may have occurred, but the mid-term trend still depends on macro liquidity, the performance of technology stocks, and the flow of institutional funds.

According to The Block, a senior Democratic member of the U.S. House of Representatives has launched an investigation into the cryptocurrency project World Liberty Financial (WLFI) related to Donald Trump, following reports that the project received a $500 million investment from an entity linked to a member of the UAE royal family.U.S. House member Ro Khanna sent a letter to WLFI co-founder Zach Witkoff requesting detailed information and relevant documents. The letter cited an earlier report from The Wall Street Journal, stating that Aryam Investment 1 (controlled by UAE National Security Advisor and President's brother Sheikh Tahnoon bin Zayed Al Nahyan) acquired a 49% stake in WLFI.

The U.S. House of Representatives has launched an investigation into the cryptocurrency project World Liberty Financial related to Trump, focusing on whether it involves foreign sovereign capital and potential national security and policy compliance issues.The investigation stems from a report previously disclosed by The Wall Street Journal: an entity linked to Abu Dhabi had secretly agreed to acquire approximately 49% of World Liberty Financial for $500 million shortly before Trump's inauguration in early 2025. In response, U.S. Congressman Ro Khanna has sent a letter to the company requesting information on its equity structure, payment details, and internal communications, as well as verification of the relevant investment situation. The letter specifically asks World Liberty Financial to confirm whether $187 million has flowed into entities related to the Trump family and whether there are additional payments made to affiliates of the company's co-founder.

U.S. Treasury Secretary Scott Bessent testified before Congress that the U.S. government will not "rescue" the asset by requiring private banks to purchase more Bitcoin during market downturns. He emphasized that neither the Treasury nor the Financial Stability Oversight Council (FSOC) has the authority to do so.Bessent also revealed that the $500 million in Bitcoin obtained by the U.S. government through asset forfeiture has appreciated to over $15 billion. According to an executive order signed by Trump in 2025, the U.S. can only increase its strategic reserves through asset forfeiture or budget-neutral strategies (such as converting oil or precious metals into Bitcoin), and not through open market purchases.Although this move has been criticized by some in the Bitcoin community as insufficient, Bitcoin advocates believe that U.S. government purchases could encourage other countries to establish their own strategic reserves, thereby impacting Bitcoin prices and market demand.

According to Yonhap News Agency, the first case of violation of the "Virtual Asset User Protection Act" in South Korea has been sentenced. The Seoul Southern District Court sentenced the CEO of a cryptocurrency trading company to 3 years in prison for manipulating coin prices, along with a fine of 500 million won (approximately 385,000 USD) and the recovery of about 846 million won (approximately 650,000 USD). However, considering Mr. Lee's active cooperation during the trial and his prior detention, the court decided not to revoke his bail and did not detain him.The court found that between July and October 2024, he used an automated trading program to inflate trading volume and repeatedly placed false buy orders to manipulate prices, with improper gains amounting to about 7.1 billion won (approximately 5.46 million USD). This case is the first to be transferred by the prosecution through the financial regulatory "fast track" since the law took effect in July 2024.

According to Arkham data, at 13:32, 584.44 BTC (worth approximately 44.62 million USD) was transferred from one anonymous address (starting with 1AJb...) to another anonymous address (starting with 14aa...).

According to CoinDesk, a statement from the U.S. Attorney's Office for the Southern District of New York revealed that Rui-Siang Lin, the alleged operator of the dark web drug marketplace Incognito Market, was sentenced to 30 years in federal prison on Tuesday. This marks the conclusion of one of the largest cases involving an online drug market since the Silk Road case.U.S. prosecutors stated that the operators of the dark web market Incognito Market used cryptocurrency and anonymous tools to conceal their identities, but investigators ultimately linked them to the platform through domain records and digital footprints. Rui-Siang Lin operated under the online alias "Pharaoh." He pleaded guilty in December 2024 to multiple charges, including conspiracy to commit drug offenses, money laundering, and conspiracy to sell adulterated and falsely labeled drugs. Prosecutors indicated that the platform facilitated over $105 million in illegal drug transactions between October 2020 and March 2024, completing more than 640,000 transactions and serving hundreds of thousands of buyers worldwide.

According to Arkham data, at 16:02, 393.27 BTC (worth approximately $30.9561 million) was transferred from one anonymous address (starting with bc1qkawf4...) to another anonymous address (starting with bc1qgmv6...).

According to Coinglass data, after another dip in the cryptocurrency market today, the funding rates indicate that the current market remains broadly bearish, with bearish sentiment towards BTC and ETH even stronger than that towards altcoins. Currently, the funding rates for BTC and ETH contracts on almost all platforms are negative, while the rates for altcoins, although still bearish, are mostly positive. The specific funding rates are shown in the attached image.Funding rates are the fees set by cryptocurrency trading platforms to maintain the balance between contract prices and the prices of the underlying assets, typically applicable to perpetual contracts. It serves as a mechanism for the exchange of funds between long and short traders; the trading platform does not charge this fee, which is used to adjust the cost or profit of traders holding contracts to keep the contract prices close to the prices of the underlying assets. When the funding rate is 0.01%, it indicates the benchmark rate. When the funding rate is greater than 0.01%, it represents a generally bullish market. When the funding rate is less than 0.005%, it indicates a generally bearish market.

According to Arkham data, at 22:21, 553.27 BTC (worth approximately $41,665,200) was transferred from one anonymous address (starting with bc1qvsp0e...) to another anonymous address (starting with bc1qw6qff...).

FTX creditor representative Sunil posted on the X platform, stating that the next round of fund distribution for FTX is expected to take place on March 31. Currently, the total reconciled claims amount to approximately $9.6 billion, of which: claims below $50,000 are about $780 million, claims above $50,000 are about $7.8 billion, and non-customer claims are about $1 billion.Sunil also pointed out that the size of the dispute reserve has decreased by approximately $2.2 billion. If the subsequent allocation of about $2 billion is completed, it is expected that the claims category above $50,000 may receive about $1.7 billion in additional payouts. Overall, the recovery progress for FTX creditors continues to advance, and the pace of future distributions will still depend on the handling of disputed claims and the progress of asset liquidation.