Metaplanet CEO Denies Misleading Investors Over Bitcoin Strategy Amid Growing Scrutiny

In a high-stakes clash between corporate leadership and crypto critics, Metaplanet CEO Simon Gerovich has forcefully rejected allegations that the company misled investors about its Bitcoin trading activities and financial disclosures. The controversy erupted after sharp-eyed observers on X (formerly Twitter) accused Metaplanet of delaying or withholding price-sensitive information regarding large Bitcoin purchases, options trades, and derivatives losses—claims that Gerovich says are based on misreading rather than misconduct.

Gerovich’s Defiant Response to Accusations

On Friday, Gerovich took to X to deliver a point-by-point rebuttal, insisting that Metaplanet has been fully transparent about all Bitcoin acquisitions, options strategies, and BTC-backed borrowings. “All Bitcoin purchases, option strategies, and borrowings have been promptly reported,” Gerovich stated, framing the criticism as a misunderstanding of the company’s financial statements rather than evidence of wrongdoing.

The dispute highlights the growing pains of publicly traded companies embracing aggressive cryptocurrency strategies, where every trade and disclosure is scrutinized by both investors and online communities hungry for transparency.

Bitcoin ETFs Suffer $166 Million Outflow as Year Starts Poorly

Meanwhile, the broader crypto market faces headwinds as U.S. spot Bitcoin ETFs recorded another $165.8 million in outflows Thursday, extending weekly losses to $403.9 million, according to SoSoValue data. The redemptions push these investment vehicles closer to a possible five-week outflow streak, with year-to-date losses ballooning to $2.7 billion.

Trading volumes have also contracted sharply, falling 21% over the week to their lowest levels since late December—a troubling signal of waning investor enthusiasm as Bitcoin struggles to regain momentum after its October peak.

White House Weighs Limited Stablecoin Rewards in Crypto Banking Talks

In Washington, the regulatory landscape continues to evolve as the White House convened its third meeting in 16 days between crypto and banking industry representatives to hash out differences over stablecoin yield provisions. Ripple CEO Brad Garlinghouse revealed that his company’s chief legal officer, Stuart Alderoty, attended Thursday’s session with White House officials.

The discussions center on the CLARITY Act, which passed the House of Representatives in July but has stalled in the Senate amid debates over how stablecoin rewards should be paid. One proposed compromise would limit third-party rewards to transaction activity rather than account balances—a potential middle ground between crypto innovation and banking sector concerns.

Quantum Computing Fears Dismissed as Bitcoin Price Driver

Adding to the market’s complexity, Bitcoin developer Matt Corollo has pushed back against claims that quantum computing fears are behind Bitcoin’s 46% price decline from its October all-time high of $126,100. “If that were true, then Ethereum would be up substantially on Bitcoin,” Corollo told journalist Laura Shin on the Unchained podcast, noting that Ether has fallen 58% since the October crypto market crash.

Corollo’s comments come as some Bitcoin advocates have pointed to quantum computing risks as a partial explanation for the cryptocurrency’s struggles, though the developer argues that such fears would manifest differently across the crypto ecosystem.

Market Snapshot: Bitcoin at $68,004 as Altcoins Show Mixed Performance

As the week closed, Bitcoin traded at $68,004, Ether at $1,972, and XRP at $1.42, with the total cryptocurrency market capitalization standing at $2.33 trillion, according to CoinMarketCap.

Among the top 100 cryptocurrencies, Stable (STABLE) emerged as the week’s biggest gainer with a 19.62% surge, followed by Morpho (MORPHO) at 13.05% and Injective (INJ) at 10.99%. However, the week’s biggest losers included Humanity Protocol (H) down 27.34%, Chiliz (CHZ) off 19.60%, and Arbitrum (ARB) falling 19.54%.

Voices from the Crypto Community

The week’s developments sparked reactions from across the crypto ecosystem:

• “Lack of Privacy may be the missing link for crypto payments adoption. Imagine a company pays employees in crypto onchain. With the current state of crypto, you can pretty much see how much everyone in the company is paid by clicking the ‘from’ address.” — Changpeng “CZ” Zhao, co-founder and former CEO of Binance

• “To look at this as a movie trailer and what’s ahead for Bitcoin and quantum. Just the preview here. It’s a two-step process. We’re going to upgrade and chill. That’s it. That’s the process.” — Matthew Roszak, chairman of Bloq and co-founder of Hemi

• “When the Treasury ramps up Treasury bill issuance, it is financing spending that flows into the real economy, and eventually into risk assets like Bitcoin. When Treasury bill issuance falls or turns negative, that fiscal tailwind fades.” — Amir Hajian, researcher at Keyrock

Bitcoin’s Next Catalyst: AI Stocks Peak?

Looking ahead, macroeconomist Lyn Alden suggests Bitcoin’s next major price surge could hinge on artificial intelligence stocks becoming “so silly big that they can’t get realistically much higher.” Alden told Natalie Brunell on the Coin Stories podcast that when AI stocks reach such extreme valuations, capital typically rotates into other opportunities with more upside potential—potentially benefiting Bitcoin and other cryptocurrencies.

Scammers Target Crypto Users with Fake Ads

The crypto industry also faced ongoing security challenges as Uniswap founder Hayden Adams warned users about fraudulent ads impersonating the platform. Adams highlighted a case where a victim “lost everything” after connecting their wallet to what appeared to be an official Uniswap app. January saw the highest amount of money stolen in crypto scams in 11 months, with scammers increasingly buying ads on popular search engines targeting keywords like “Uniswap.”

Regulatory Battles Intensify

Regulatory uncertainty continued to roil the market as a Tennessee federal judge temporarily blocked the state from enforcing gambling laws against prediction-market operator Kalshi’s sports-event contracts. The ruling allows Kalshi to continue offering sports-related event contracts to Tennessee users while its lawsuit against state regulators proceeds.

Meanwhile, South Korean lawmakers stepped up pressure on financial regulators after crypto exchange Bithumb mistakenly credited customers with Bitcoin it did not hold—an error that briefly sparked a rush to sell and raised questions about oversight of the country’s digital-asset market. The Financial Services Commission failed to detect critical flaws in Bithumb’s internal systems despite at least three inspections since 2022, according to opposition lawmakers.

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