CertiK vs Kraken Dispute, German Government Sells BTC, and SEC Closes ETH 2.0 Investigation

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The cryptocurrency landscape continues to evolve at a rapid pace, with pivotal developments in regulation, institutional adoption, and security controversies shaping the market’s trajectory. This week’s most notable events include a high-profile dispute between CertiK and Kraken, Germany’s continued liquidation of seized Bitcoin, and the U.S. Securities and Exchange Commission (SEC) officially closing its investigation into Ethereum 2.0. These stories, alongside major moves from institutions like渣打银行 and MicroStrategy, highlight the growing maturity—and complexity—of the digital asset ecosystem.

SEC Closes Ethereum 2.0 Investigation

In a landmark development for the crypto industry, Consensys confirmed that the SEC has ended its investigation into Ethereum 2.0. This effectively signals that the regulator does not intend to classify ETH sales as securities offerings—a long-standing concern for developers and investors alike.

👉 Discover how this regulatory clarity could accelerate institutional crypto adoption.

The decision follows Consensys’ formal request in early June, urging the SEC to confirm that its approval of ETH-based ETFs under a commodity framework implies closure of the Ethereum 2.0 probe. While this marks a significant win for Ethereum advocates, Consensys continues its legal battle, seeking a court declaration that MetaMask Swaps and Staking services do not violate securities laws.

This outcome contrasts sharply with the SEC’s ongoing lawsuit against Kraken, where the regulator claims 11 tokens—including SOL, ADA, and ALGO—are unregistered securities. The divergence underscores the SEC’s selective enforcement strategy and raises questions about future regulatory clarity for other major cryptocurrencies.

CertiK and Kraken: A Security Showdown

A heated conflict has erupted between blockchain security firm CertiK and crypto exchange Kraken over a white-hat hacking incident involving a critical vulnerability.

CertiK claims it discovered a severe flaw in Kraken’s system and promptly reported it. During testing, CertiK extracted funds from Kraken’s hot wallet using multiple addresses to simulate potential attack vectors. The extracted assets—totaling over $3 million in ETH, USDT, MATIC, and XMR—were later returned, though discrepancies remain.

Key points of contention:

Adding fuel to the fire, some of the extracted funds were routed through privacy tools like ChangeNow and Tornado Cash. Chain analysis also revealed that CertiK’s test address used the same signature hash as an unknown Base network contract active since May 24—raising doubts about when the vulnerability was actually discovered.

CertiK maintains that no real user funds were at risk and that all actions were part of ethical testing to stress-test Kraken’s defenses. However, Kraken reportedly threatened legal action against CertiK personnel, prompting the firm to go public with the incident.

This case highlights the gray areas in white-hat security research and calls for clearer protocols between auditors and exchanges.

German Government Offloads 1,400 BTC Amid Market Speculation

The German government has intensified its Bitcoin disposal spree, transferring a net 1,400 BTC (~$91 million) to major exchanges including Kraken, Bitstamp, and Coinbase over a two-day period.

Initial movements on June 19 included:

Despite later withdrawals totaling 320 BTC, the net outflow remains substantial. The government still holds approximately 47,179 BTC, valued at over $3 billion.

Market analysts speculate these moves are preparatory steps for further sales to cover budgetary obligations or debt repayment. Such large-scale sell-offs often trigger short-term price volatility, though long-term impacts depend on market absorption capacity.

Institutional Adoption Gains Momentum

渣打银行 Launches Spot Crypto Trading Desk

渣打银行 has officially entered the spot crypto trading arena with a dedicated desk for Bitcoin and Ethereum. Integrated within its foreign exchange division, the new service caters to institutional clients and reflects the bank’s broader digital asset strategy.

The move follows months of regulatory coordination and aligns with increasing demand for compliant crypto access among traditional finance players.

Coinbase Introduces Pre-Launch Market

Coinbase is expanding its derivatives offerings with a new Pre-Launch Market on both Coinbase International Exchange and Coinbase Advanced. The platform enables qualified users to trade perpetual futures contracts for tokens before official listing—enhancing price discovery and early market participation.

This innovation positions Coinbase as a leader in bridging pre-token launch ecosystems with retail and institutional liquidity.

Market & Ecosystem Updates

MicroStrategy Adds 11,931 BTC to Its Holdings

Michael Saylor’s MicroStrategy continues its aggressive accumulation strategy. Between April 27 and June 19, the company acquired 11,931 BTC at an average price of $65,883**, spending approximately **$786 million.

With total holdings now at 226,331 BTC (average cost: $36,798), MicroStrategy remains one of the largest corporate Bitcoin holders—a bullish signal amid macroeconomic uncertainty.

Ethereum NFTs Face Broad Decline

The Ethereum NFT market is experiencing widespread depreciation. Major collections like Bored Ape Yacht Club (BAYC), Azuki, and CryptoPunks have seen floor prices drop between 15%–23% over the past week. Analysts attribute this to profit-taking ahead of Blur’s third-season finale and reduced speculative activity.

LayerZero Airdrop with a Philanthropic Twist

LayerZero’s highly anticipated $ZRO token launch introduced a novel “Proof-of-Donation” mechanism. To claim tokens, users must donate **$0.10 per ZRO** in USDC, USDT, or ETH to Protocol Guild—a collective funding initiative for Ethereum developers.

The foundation will match donations up to $10 million**, potentially directing **$18.5 million toward open-source development. Over 1.28 million addresses qualified for the airdrop, reinforcing LayerZero’s community-driven ethos.

Key Funding Rounds This Week

Frequently Asked Questions (FAQ)

Q: What does the SEC closing the ETH 2.0 investigation mean for investors?
A: It reduces regulatory risk for Ethereum-based projects and strengthens ETH’s classification as a commodity, potentially paving the way for broader financial product approvals.

Q: Did CertiK steal funds from Kraken?
A: No evidence suggests theft. CertiK conducted authorized security testing but faced criticism for using privacy tools and failing to return all disputed assets as demanded by Kraken.

Q: Why is Germany selling Bitcoin?
A: The BTC was seized from criminal activities (e.g., Colonial Pipeline hackers). Sales are likely part of asset liquidation to fund state budgets or repay debts.

Q: Is MicroStrategy still buying Bitcoin?
A: Yes. The company continues its “buy and hold” strategy using proceeds from convertible notes and cash reserves.

Q: How does LayerZero’s donation model work?
A: Users must donate $0.10 per ZRO token claimed. Donations go to Protocol Guild; LayerZero matches up to $10M.

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Final Thoughts

From regulatory milestones to institutional adoption and ethical security debates, this week underscores crypto’s transition into mainstream finance. As giants like渣打 bank enter the space and regulators provide clarity on assets like ETH, the foundation for sustainable growth is being laid—albeit with growing pains along the way.

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Core Keywords: Ethereum 2.0, SEC investigation, CertiK Kraken dispute, German government Bitcoin sale, MicroStrategy Bitcoin purchase, LayerZero airdrop, institutional crypto adoption