January 29 News, controversy has once again erupted within the U.S. Congress over cryptocurrency regulation. Six senators recently co-signed a letter to Deputy Attorney General Todd W. Blanche, questioning potential undisclosed conflicts of interest related to his efforts to reduce enforcement of U.S. digital assets. The signatory senators include Elizabeth Warren, Mazie K. Hirono, Richard J. Durbin, Sheldon Whitehouse, Christopher A. Coons, and Richard Blumenthal. The letter states that Blanche, when issuing a memorandum titled "Ending Enforcement Through Prosecution" in April 2025, still held approximately $158,000 to $470,000 worth of crypto assets, mainly Bitcoin and Ethereum. The memorandum called for prosecutors to avoid taking action against platforms themselves and to focus enforcement on individuals using cryptocurrencies for criminal activities.

The court-appointed administrator responsible for liquidating Terraform Labs' remaining assets has directed its focus towards the well-known quantitative trading firm Jump Trading, accusing it of playing a key role in the rapid rise and collapse of the Terra ecosystem and profiting immensely from it. According to The Wall Street Journal, the liquidator Todd Snyder has filed a lawsuit in the U.S. federal court in Illinois, seeking approximately $4 billion in damages from Jump Trading, its co-founder William DiSomma, and Jump Crypto's former president Kanav Kariya. In the lawsuit, Snyder stated that Jump Trading systematically exploited the Terraform Labs ecosystem through market manipulation, concealment of critical information, and proprietary trading, while shifting the risks onto numerous uninformed investors. He pointed out that these actions directly contributed to one of the largest collapses in cryptocurrency history, causing irreversible losses to the market and investors.