Several possible explanations exist for why a crypto winter has not occurred this time.

The last week has brought some bad news for the crypto scene. Several well-known (or infamous) names have been sued and even criminally charged. Despite this, the values of well-known cryptocurrencies have remained relatively stable and any price drops have not been as bad as some people thought.

Do Kwon, the CEO of Terraform Labs, was arrested at an airport in Montenegro on March 23 where he attempted to use a fake Costa Rican passport, possibly to leave the country. He is currently wanted by the South Korean police for his involvement in the collapse of the Luna cryptocurrency. The crash wiped out $40 billion in value and created the 2022 crypto winter where numerous stablecoins such as Bitcoin dropped in value.

Last month, the SEC filed a civil lawsuit against Kwon and Terraform Labs charging them with fraud, selling unregistered securities and security-based swaps. He is accused of misleading investors with false statements about Luna coin which led to massive losses when the coin was depegged from the US Dollar.

Soon after Kwon’s arrest, the U.S. Department of Justice filed a criminal indictment against him, charging Kwon with securities fraud, commodities fraud, wire fraud, and market manipulation.

Samuel Bankman-Fried, the former CEO of FTX (which recently filed for bankruptcy), was criminally charged with fraud and violating federal campaign finance laws. He is currently under house arrest while awaiting trial.

A few days ago, he was hit with an additional criminal charge accusing him of violating the Foreign Corrupt Practices Act by bribing Chinese government officials with $40 million worth of cryptocurrencies.

And, on Monday, the Commodity Futures and Trading Commission (CFTC) filed a civil lawsuit against Binance and its CEO Changpeng Zhao. In its complaint, the CFTC accused Binance of selling derivatives without registering with the CFTC. The agency also accuses the company of secretly operating in the U.S. despite publicly stating that it did not do so. Employees encouraged U.S. users to use virtual private networks to hide their U.S. IP address. It has also directed trading companies in the U.S. to set up shell companies overseas to avoid regulations. And some of the senior staff at Binance acknowledged that terrorists may be using their exchange.

After the fall of many large crypto companies such as FTX, most crypto users believed Binance was the only remaining stable, reputable company left. Others believed that it was a matter of time before enforcement and regulatory agencies would target Binance.

Despite the serious government actions against these once well-known companies, the prices of stablecoins such as Bitcoin and Ethereum have not plunged dramatically. This was unlike the previous crypto winter when the price of Bitcoin fell to $27,000 from $40,000 due to the collapse of the Luna token.

So why hasn’t the price of stablecoins tanked despite the bad news? There are several opinions.

First, people are still reacting to the recent failures of some U.S. banks, including Silvergate and Signature Bank, both being known for being crypto friendly. They may be converting their real money into crypto until the government can stabilize the situation and restore confidence in the banking sector. Of course, cryptocurrencies may have wild price swings but losing some of your money is better than losing all of your money if the bank goes into receivership.

Second, there seems to be belief that cryptocurrencies can beat inflation. While that might be true for a little while, history shows that eventually the price will fall. But investors seem to be fine with accepting that risk.

Third, people are still using stablecoins for transactions regardless of the value. Not all of these transactions are good as some can be attributable to online scams or even criminal or terrorist activities. But as long as there is a seller and a buyer, the cryptocurrency will continue to exist.

So far cryptocurrency values have withstood recent bad news. But whether it will stay that way is anyone’s guess.

Steven Chung is a tax attorney in Los Angeles, California. He helps people with basic tax planning and resolve tax disputes. He is also sympathetic to people with large student loans. He can be reached via email at [email protected]. Or you can connect with him on Twitter (@stevenchung) and connect with him on LinkedIn.

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