Overview:
- DOJ’s $400 million Helix seizure highlights intensified enforcement against illicit crypto activity.
- A $3 billion USDT burn on Ethereum and elevated stablecoin dominance signal risk-off behavior.
- SENT rallies sharply while XRP breaks support, and Bitcoin ETFs have $817.87 million in outflows.
The cryptocurrency saw major developments through regulatory action, tightening liquidity conditions, sharp asset-specific moves, and shifting institutional flows. From a major US Department of Justice seizure linked to darknet activity to divergent performances among altcoins and heavy Bitcoin ETF outflows.
US DOJ Finalizes $400M Seizure Linked to Helix Mixer
The US Department of Justice has taken control of more than $400 million in cryptocurrency and cash assets, which belong to Helix, a former darknet cryptocurrency mixer, and its associated real estate holdings.
Helix operated as a mixer service, which processed around 3,54,468 BTC for its users, making it one of the most popular mixing services used by online drug dealers on darknet markets.
Larry Dean Harmon, who ran the service, received his 2021 admission of guilt to money laundering conspiracy charges. The court sentenced him to prison, imposing supervised release and asset forfeiture penalties.
The IRS Criminal Investigation unit and Homeland Security investigators played essential roles in shutting down the operation, tracing millions of dollars through Helix’s operational network.
Sentient Defies Market Weakness With 60% Rally
Sentient (SENT) gained over 60% despite a broader market pullback that declined more than 5%.
The price movement showed volatility as SENT experienced an 18% drop from its recent peak before rebounding.
Data suggests SENT’s strength has been supported by an inverse correlation with Bitcoin, attracting traders seeking diversification.
However, derivatives data show a heavy long bias, raising the risk of sharp downside moves if the price fails to hold key support levels.
XRP Breaks Key Support as Selling Accelerates
XRP saw a sharp market downturn in the last 24 hours, resulting in a 7% price decline after it dropped below its key support level at $1.79.
The breakdown caused an increase in trading activity, indicating forced selling and leveraged positions unwinding instead of making profitable exits.
The price has stabilized near $1.75, yet the technical structure shows weakness.
Analysts observe that former support has turned into resistance, while failure to reclaim the $1.79-$1.82 price range will lead to increased downward risk for .
Ethereum Liquidity Tightens After $3B USDT Burn
The stablecoin supply has decreased, creating tighter liquidity conditions for the network.
On January 20, on-chain data showed $3 billion USDT was burned on Ethereum (ERC-20), which marked the highest single-day burn in almost one year, while Tron only minted $1 billion. The result was a net $2 billion reduction in overall USDT liquidity.
The stablecoin dominance level stays above important support, indicating that investors prefer to protect their capital instead of taking high-risk positions.
Binance derivatives data further confirms a defensive environment, with aggressive seller dominance reflected in sharply negative net taker volume.
Bitcoin Spot ETFs See $817M in Daily Outflows
According to SoSoValue, the Bitcoin spot ETF saw a total net outflow of $817.87 million yesterday. BlackRock’s ETF IBIT saw the highest daily net outflow of $317.81 million.
Fidelity’s ETF FBTC was the second highest with a net outflow of $168.05 million.
The total net asset value of Bitcoin Spot ETFs is $107.65 billion, with an ETF net asset ratio of 6.4%. The historical cumulative net inflow has reached $55.52 billion.
Binance to Shift $1B SAFU Fund Into Bitcoin
Binance announced plans to convert the stablecoin holdings of its $1 billion Secure Asset Fund for Users (SAFU) into Bitcoin over the next 30 days.
The exchange said it will top up the fund if its value drops below $800 million due to price fluctuations and will conduct regular audits.
The decision reflects a long-term commitment to as a reserve asset, even during periods of market stress.
“This initiative is part of Binance’s long-term industry-building efforts, and we will continue to advance related work, gradually sharing more progress with the community,” the translated version of the exchange’s post on X.
FAQs:
1. What is Helix, and why did the DOJ seize $400M?
Helix was a darknet mixer used to launder crypto; the DOJ seized assets after its operator was convicted of money laundering.
2. Why did Sentient (SENT) rise despite market weakness?
SENT benefited from inverse Bitcoin correlation and strong spot buying, though leveraged longs increase downside risk.
3. What triggered XRP’s sharp decline?
XRP broke the $1.79 support, leading to forced selling and leveraged position unwinds.
4. How does the $3B USDT burn impact Ethereum markets?
It reduced deployable liquidity on Ethereum, weakening spot demand and reinforcing a defensive market stance.
5. Why are Bitcoin spot ETFs seeing large outflows?
Short-term institutional risk aversion drove $817M in daily outflows, despite strong long-term cumulative inflows.