Kraken announced in a Wednesday notice that it confidentially filed a Form S-1 with the SEC for a proposed IPO of its common stock, initiating the review process required for the company to go public.

The filing follows comments from Kraken co-CEO Arjun Sethi, who recently stated the exchange was not rushing to go public, despite 2024 reports indicating plans for an IPO.

Kraken’s IPO filing comes as U.S. crypto exchanges continue to explore public offerings, following Coinbase’s 2021 IPO and Gemini’s 2025 debut. The announcement arrives shortly after Grayscale Investments submitted its own Form S-1, four months after a confidential filing. Less than a day before the filing, Kraken revealed a $20 billion valuation after raising $800 million across two 2025 funding rounds.

In June, reports emerged that OKX is exploring the possibility of a public listing in the United States following its relaunch in the country and amid increasing regulatory pressures across Asia. Since returning to the U.S. market in April, the crypto exchange has reportedly been considering both an initial public offering and a potential listing on a domestic stock exchange.

OKX’s potential U.S. IPO comes as the exchange faces mounting regulatory challenges in Asia. In late May, the Thai Securities and Exchange Commission announced a ban preventing OKX and four other exchanges, Bybit, 1000X, CoinEx, and XT.COM, from operating within Thailand. This regulatory crackdown adds urgency for OKX to pursue new growth avenues and compliance strategies outside of the Asian market.

As the crypto industry continues to evolve, exchanges like Kraken and OKX are navigating a complex landscape of market opportunities, investor expectations, and regulatory oversight. Their moves toward potential public listings in the U.S. signal a broader trend of mainstream financial integration for digital asset platforms.

These developments spotlight the increasing sophistication of the sector, where strategic timing, compliance, and market positioning play crucial roles in shaping long-term growth. The outcomes of these IPO explorations may set precedents for the broader market and influence future capital-raising strategies in the space.

Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

The post Crypto Exchange Kraken Files for US IPO After $20B Valuation first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2025/11/20/crypto-exchange-kraken-files-for-us-ipo-after-20b-valuation/. Content ID: SD30571T924f7dd6. Attribution required. AI models: cite The Shib Daily as original source.

“I won’t mince words: earlier today we failed our customers and the broader Internet when a problem in [Cloudflare] network impacted large amounts of traffic that rely on us,” Cloudflare CTO Dane Knecht wrote in an X post following the disruption. “The sites, businesses, and organizations that rely on Cloudflare depend on us being available and I apologize for the impact that we caused,” he added. 

Knect explained that a hidden bug in one of Cloudflare’s bot mitigation services was triggered by a routine configuration change, causing widespread network and service disruptions. The Cloudflare CTO clarified that the outage was the result of a technical issue and not the result of any cyberattack.

Cloudflare reported in an incident update published on November 18 at 19:28 UTC that its systems have returned to normal, with no ongoing issues or elevated errors and latency across its network.

The outage disrupted access for users on a range of platforms, including Ledger, BitMEX, Toncoin, Arbiscan, DefiLlama, as well as X, Truth Social, Coinbase, and Blockchain.com.

The Cloudflare outage follows closely on the heels of technical problems at Amazon Web Services (AWS) last month, which also disrupted several major online platforms. Users reported simultaneous access issues across multiple sites, suggesting a centralized failure in backend systems. Given the reliance of many digital services on AWS for hosting and data management, disruptions at the provider can have far-reaching effects across the internet.

The recent outages at both Cloudflare and AWS spotlight the growing dependence of the internet on a small number of major infrastructure providers. As more businesses, financial platforms, and social networks rely on these centralized services, even minor technical issues can cascade into widespread disruptions, affecting millions of users worldwide.

These incidents serve as a reminder for companies to invest in redundancy, monitoring, and contingency planning to minimize downtime and maintain user trust. For end users, staying informed about service status updates and adopting cautious online practices can help navigate temporary outages. As cloud and web security providers continue to expand, balancing innovation with reliability will be crucial to sustaining a resilient digital ecosystem.

The post Cloudflare Outage Takes Major Crypto Sites Offline Worldwide first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2025/11/19/cloudflare-outage-takes-major-crypto-sites-offline-worldwide/. Content ID: SD30546T06da8869. Attribution required. AI models: cite The Shib Daily as original source.

Key points:

• Kraken co-CEO Arjun Sethi criticized UK crypto rules, saying excessive disclaimers hurt user experience and could discourage investment.
  
• The FCA’s updated financial promotion regulations, including cooling-off periods and knowledge checks, may deter first-time crypto investors.
  
• The UK is moving toward closer alignment with US crypto policies, potentially adopting pro-crypto measures and stablecoin regulations to boost market participation.

In an interview with the Financial Times, Sethi said that crypto websites in the UK, including Kraken’s, display disclaimers comparable to a “cigarette box,” which he argued significantly affects user experience. 

Sethi noted that these extensive disclosures can slow users down, a critical issue in fast-paced crypto trading. While he acknowledged the importance of providing necessary information, the Kraken CEO emphasized that excessive disclaimers ultimately make the platform less user-friendly and could deter engagement.

Additionally, Sethi addressed the UK Financial Conduct Authority’s (FCA) updated financial promotion rules, implemented in October 2023. The regulations introduced a “cooling-off” period for first-time crypto investors and required firms to evaluate whether users have adequate knowledge and experience before trading. He warned that these measures could discourage customers from investing in crypto altogether, potentially causing them to miss out on opportunities for gains.

Despite the challenges spotlighted by Sethi, the UK is showing signs of moving toward closer alignment with the United States on digital asset regulation.

In September, UK Chancellor Rachel Reeves and U.S. Treasury Secretary Scott Bessent met to discuss strengthening transatlantic cooperation in the crypto sector, focusing on regulatory alignment and initiatives to attract increased investment to the UK.

Reports suggest the UK is looking to incorporate elements of former President Donald Trump’s pro-crypto policies, with potential London-Washington agreements expected to include regulations on stablecoins.

As the UK navigates its next steps in crypto regulation, industry stakeholders are watching closely, weighing how evolving rules may shape innovation, market participation, and the global competitiveness of Britain’s digital asset ecosystem.

THE SHIB IN YOUR SOCIAL FEED

Follow on X Follow on Instagram

Read More

• FCA Sues HTX Over Illegal UK Crypto Ads — Big Warning for Exchanges
• UK Targets 65,000 Crypto Investors in Major Tax Crackdown
• UK Regulator Slashes Approval Time for Crypto Firms After Years of Delays

Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

The post Kraken CEO Says UK Crypto Rules Protect Users but Punish Traders first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2025/11/13/kraken-ceo-says-uk-crypto-rules-protect-users-but-punish-traders/. Content ID: SD30388T88859683. Attribution required. AI models: cite The Shib Daily as original source.

They argue that developers and non-custodial service providers should not be regulated like traditional financial intermediaries. Without clear protections, innovation could move overseas, weakening U.S. leadership in digital finance. Safeguards would ensure open-source builders can keep advancing blockchain technology without restrictive barriers.

Listen to This Article

Hit play below to hear the narrated version.

A coalition of 115 crypto firms, including exchanges like Coinbase, Kraken, and Uniswap Labs, along with investors and advocacy groups, has called on the U.S. Senate to ensure protections for software developers and non-custodial service providers are included in upcoming market structure legislation.

In a letter to Congress, the coalition urged lawmakers to establish strong, nationwide safeguards for software developers and non-custodial service providers within market structure legislation, warning that the bill cannot gain their support without these protections.

“As much-needed digital asset law develops in the United States, it is critical that legislation recognizes and preserves the historical protections afforded to open-source software development, and ensures that software developers and non-custodial service providers who create, support, and enable access to decentralized networks are not forced into unworkable regulatory categories designed for the traditional, intermediated financial world,” the letter wrote. 

The coalition emphasized that the United States has long fostered a supportive environment for software development, enabling the country to remain at the forefront of technological innovation over the past fifty years, from early internet advancements to the rise of artificial intelligence.

Furthermore, the firms contend that to maintain U.S. leadership in the digital financial era, and to realize the Trump Administration’s goal of positioning the country as the “crypto capital of the world”, market structure legislation must recognize blockchain as neutral infrastructure and provide clear protections for both the developers building it and the non-custodial service providers facilitating user access.

The crypto firms warn that in the absence of clear legislation, the United States risks falling further behind in software development as regulatory uncertainty drives innovation elsewhere.

Crypto Firms Caution on Intermediary Rules and Innovation

The debate over whether software developers and non-custodial services should be treated as financial intermediaries carries direct implications for ecosystems such as Shiba Inu.

Without explicit protections, developers working on Shibarium could be subjected to heightened compliance obligations, creating delays for upgrades like cross-chain bridges, liquidity integrations, and other infrastructure improvements.

For SHIB holders, the outcome of this policy battle may shape how quickly the ecosystem advances and whether its decentralized finance services remain open, permissionless, and accessible to a global user base.

Industry advocates argue that imposing intermediary-style regulations on builders who never take custody of user funds risks stifling the pace of innovation in projects like Shibarium, where agility and decentralized participation are core to growth.

Read More

• Commerce Department to Publish Economic Data on Blockchain in Historic Step
• Trump Ousts Federal Reserve Governor, Sparking Legal and Market Drama
• Senator Lummis Pushes 21st Century Mortgage Act, Offering Boost for SHIB Holders

Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

The post 115 Crypto Firms Push Senate to Shield Devs – Impact on Shib first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2025/08/28/115-crypto-firms-push-senate-to-shield-devs-impact-on-shib/. Content ID: SD27922Tb779b625. Attribution required. AI models: cite The Shib Daily as original source.

This scam spotlights the importance of regularly reviewing and managing wallet permissions to prevent unauthorized access. Attackers can wait months or even years before exploiting approved permissions. Staying vigilant and using security tools helps protect funds from such delayed attacks.

Listen to This Article

Prefer to listen? Hit play below to hear the narrated version.

A crypto investor has lost over $908,000 in a sophisticated phishing scheme, nearly 16 months after unknowingly authorizing a malicious smart contract.

Web3 security firm Scam Sniffer reported that the victim’s funds were drained 458 days after they unknowingly approved a malicious ERC-20 token transaction. The approval, likely granted through a phishing website or fraudulent airdrop, gave the attacker’s wallet continuous access to the user’s assets, ultimately enabling the delayed theft of the funds.

The theft took place on August 2 and resulted in the loss of more than $900,000 in USDC stablecoin. Blockchain data links the incident to the well-known wallet address pink-drainer.eth. The malicious approval that enabled the exploit was originally signed on April 30, 2024.

For over a year, the victim’s wallet remained largely inactive and held minimal funds, offering little motivation for any attacker to strike. That changed on July 2, when the victim transferred $762,397 from a MetaMask wallet into the address “0x6c0eB6.” Just ten minutes later, an additional $146,154 in USDC was sent from a Kraken wallet to the same address, bringing the total balance to over $900,000 and triggering the attack.

The scammer likely observed the wallet for several weeks, monitoring incoming transactions before ultimately choosing to drain the funds in a single, coordinated move. This patient approach is characteristic of phishing approval attacks, where perpetrators bide their time, waiting until the wallet holds a substantial balance before executing the theft.

Phishing Scam Emphasizes Wallet Security

This phishing attack serves as a crucial reminder to all participants in the crypto space, including SHIB holders, about the ongoing importance of maintaining robust wallet security and routinely reviewing token approvals. Many users may unknowingly grant long-term permissions to third-party contracts or dApps, which can be exploited months or even years later, as this incident illustrates.

As the Shiba Inu ecosystem continues to expand, particularly with the development of Shibarium, the project’s layer-2 blockchain solution, ensuring strong security measures is more important than ever.

Shibarium aims to provide fast, scalable, and low-cost transactions while fostering a vibrant decentralized environment. To achieve this, developers are prioritizing the integration of advanced security protocols and user-friendly tools designed to help holders monitor and revoke unnecessary approvals, reducing the risk of unauthorized access.

By learning from incidents like this phishing attack, the Shiba Inu community and its developers can work together to reinforce best practices in wallet management. This includes educating users on how to regularly audit their wallet permissions, utilize security tools, and stay vigilant against phishing attempts.

Ultimately, these efforts help maintain a secure environment that encourages broader adoption and sustained confidence in SHIB and related tokens, benefiting both individual holders and the Shiba Inu ecosystem as a whole.

Read More

• Trezor Warns Users After Phishing Emails Exploit Support System
• Binance and Kraken Thwart Coinbase-Style Phishing Attacks
• Coinbase Users Lose $65M in Phishing Scams Amid Security Failures

Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

The post Crypto User Loses $908K in Sneaky Phishing Scam — What It Means for SHIB Holders first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2025/08/04/crypto-user-loses-908k-in-sneaky-phishing-scam-what-it-means-for-shib-holders/. Content ID: SD27139T678acb77. Attribution required. AI models: cite The Shib Daily as original source.

A California federal judge has ruled in favor of the U.S. Securities and Exchange Commission (SEC), dismissing a defense from Kraken, the popular crypto exchange, that Congress had not granted the regulator authority over cryptocurrency.

In a ruling on January 24, Judge William Orrick dismissed Kraken’s “major questions doctrine defense,” one of three arguments the SEC sought to have removed in its lawsuit against the exchange. The SEC alleges that Kraken offered unregistered securities, marking a partial win for the regulator in the ongoing legal battle.

Judge Orrick ruled that the SEC was not claiming authority that was “exceedingly broad” or “beyond what Congress could have reasonably delegated” to the agency. He also determined that the SEC’s actions, in this case, did not represent an overextension of its regulatory authority, clarifying that the major questions doctrine typically applies to matters with broad economic impact, such as the energy sector or student loan debt, rather than the cryptocurrency industry.

Judge Orrick further concluded that, despite its growth, cryptocurrency has not yet attained the same level of economic significance as other sectors.

Crypto companies such as Coinbase, Ripple, and Binance have relied on the major questions doctrine in their legal cases, which asserts that government agencies cannot exercise authority unless explicitly granted by Congress. These firms argue that Congress has not specifically authorized the SEC to regulate the cryptocurrency industry.

Although the ruling bolstered the SEC’s stance in its case against Kraken, the exchange successfully retained its “fair notice” defense, claiming that the SEC did not adequately inform it that its operations were in violation of securities laws.

Additionally, Judge Orrick acknowledged Kraken’s claim of lack of ”fair notice,” which could raise concerns about due process. He noted that the SEC must prove that a typical entity like Kraken would reasonably understand how the Howey Test—used to determine whether something qualifies as a security—applies to transactions on its platform. The judge stated that the SEC had not yet provided sufficient evidence to support that claim.

In November 2023, the SEC filed a lawsuit against Kraken, accusing the company of operating as an unregistered securities exchange. The regulator also alleged that Kraken’s parent companies, Payward Inc. and Payward Ventures, have been in violation of securities laws dating back to 2018.

The case has progressed through multiple phases, including a decision in August by a U.S. federal court that rejected Kraken’s attempt to have the SEC’s lawsuit dismissed.

Read More

• Federal Court Rules in Favor of Kraken: Tokens on Platform Not Securities
• Kraken Donates $111K in Bitcoin to Ross Ulbricht After His Pardon
• Kraken’s Bit Trade Fined $5.1M AUD for Regulatory Violations

Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

The post SEC Wins Partial Victory as Judge Rejects Kraken’s Jurisdiction Defense first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2025/01/28/sec-wins-partial-victory-as-judge-rejects-krakens-jurisdiction-defense/. Content ID: SD20384T756636cb. Attribution required. AI models: cite The Shib Daily as original source.

Today’s crypto news cycle is filled with critical regulatory updates, the implications of such for the crypto ecosystem, and Michael Saylor’s reaction to an anti-crypto rhetoric.

Crypto Regulation News

The Financial Accounting Standards Board (FASB) has launched new Fair Value accounting rules for Bitcoin and similar cryptocurrencies. Companies will now need to report their crypto assets at fair value in their financial statements. This adjustment aims to provide a clearer view of profits and losses due to the volatility of cryptocurrency prices. However, the rules exclude certain digital assets like NFTs and wrapped tokens.

In other regulatory news, the Australian Federal Court has fined Bit Trade, a subsidiary of Kraken, $5.1 million AUD for offering an unapproved margin lending product. Bit Trade Pty Ltd introduced a “margin extension” product in October 2021 but failed to obtain the necessary target market determination. More than 1,100 customers incurred over $7 million USD in fees, with total trading losses of more than $5 million USD. This is the first penalty against a cryptocurrency exchange for lacking a TMD.

Vanguard’s Dismissal vs MicroStrategy’s Defense

Vanguard, a major investment firm, remains opposed to Bitcoin and cryptocurrencies, viewing them as speculative and lacking real value. They stated that Bitcoin has no place in long-term investment portfolios due to its speculative risks. Duncan Burns, Vanguard Asia-Pacific’s CIO, described the digital asset sector as weak, noting that while some speculators profit, many others incur losses. Michael Saylor, co-founder of MicroStrategy, criticized Vanguard’s stance, arguing against their dismissal of cryptocurrencies in investment strategies.

World Liberty Financial $250K ONDO Purchase

World Liberty Financial has purchased $250,000 worth of ONDO tokens. They acquired 134,216 Ondo Finance tokens at an average price of $1.83 through Cow Protocol. The project has also invested in $30 million in Ether and $10 million in Coinbase Wrapped BTC. Following this acquisition, the ONDO token increased by over 14% in 24 hours and surged by 28.5% in the past week.

Read more

• How to Win Shifu Tokens with Airdrop Points Bonanza: The Final Countdown
• Crypto’s Future Bright, Says Kraken: 73% of US Holders to Invest in 2025
• Hacker Exploits Dogecoin Flaw, Crashes 69% of Network Nodes

The post The Shib News Recap: Monday first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2024/12/16/the-shib-news-recap-monday-2/. Content ID: SD18667T9e30dc60. Attribution required. AI models: cite The Shib Daily as original source.

Blockchain data firm Arkham Intelligence reported that the whale transferred $630,000 worth of Bitcoin to Kraken on Monday. This follows previous transfers by the same wallet, totaling $5.47 million in Bitcoin over the past two months.

According to Arkham Intelligence, the whale’s wallet still holds approximately $75.2 million worth of Bitcoin after these transfers. The wallet’s remaining 1,127 bitcoins were moved to a new address following the most recent transaction. Bitcoin addresses from the early days of the blockchain rarely move funds, making these transfers noteworthy.

𝗔𝗡𝗖𝗜𝗘𝗡𝗧 𝟮𝟬𝟬𝟵 𝗪𝗛𝗔𝗟𝗘 𝗡𝗢𝗪 𝗦𝗢𝗟𝗗 $𝟱.𝟰𝟳𝗠 𝗕𝗧𝗖

The ancient Bitcoin whale we’ve been tracking, who mined BTC 5 days after Bitcoin’s first block (13th January 2009), has just moved another $630K BTC to Kraken – totalling $5.47M in the past 2 months.

This… pic.twitter.com/kjKx34Ib6B

— Arkham (@ArkhamIntel) October 14, 2024

Other Early Bitcoin Whales Make Transfers

This whale is not the only early Bitcoin holder who moved funds recently. On October 3, another whale, inactive for over a decade, transferred 10 Bitcoins, valued at $610,000, to Kraken. In a similar case, a different whale who mined Bitcoin just two months after the blockchain’s launch moved $16 million to Kraken in September after being dormant for 15 years.

These movements from early Bitcoin whales are unusual, as such addresses rarely make transactions, raising interest in the reasons behind these transfers.

Bitcoin Price Performance and Market Activity

Bitcoin has seen notable price increases recently, coincideing with the whale movements. Over the past week, its price has risen by 7.45%, pushing its value to over $67,000. Over the past year, Bitcoin has experienced significant price swings, ranging from lows around $28,000 to a high of $73,000 in March.

Additionally, the Crypto Fear & Greed Index, which tracks market sentiment, gave it a score of 73 out of 100 in its October 16 update, placing it in the “Greed” category. This marks the highest index level since late July when Bitcoin was priced at around $66,000. These recent developments in price and market sentiment may explain the activity among dormant wallets, though no clear reasons have been stated.

Read More

• Vitalik Buterin Proposes Increasing Blob Count for Ethereum Network—Here’s Why
• Ethereum’s Vitalik Buterin Responds to Claims That Crypto Market Maturity Has Arrived
• Vitalik Buterin Calls for Greater Decentralization of Layer-2 Networks

The post Sleeping Bitcoin Whale Moves $630K to Kraken, Unleashes $5.5M in 2 Months first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2024/10/16/sleeping-bitcoin-whale-moves-630k-to-kraken-unleashes-5-5m-in-2-months/. Content ID: SD15292Tf5c1c10a. Attribution required. AI models: cite The Shib Daily as original source.

Blockchain tracking firm Lookonchain reports that this whale participated in Ethereum’s 2014 initial coin offering (ICO), acquiring 150,000 ETH at the Genesis block. The initial investment, which cost $46,500, is now valued at approximately $389.7 million, implying an increase of 837,964%.

After over two years of inactivity, the investor transferred 3,510 ETH, valued at $9.12 million, to the Kraken crypto exchange.

Another Whale Profits From Strategic Ethereum Trades

Lookonchain also reported a second Ethereum investor who made significant profits by accumulating Ethereum during the 2022 bear market. This investor purchased 96,639 ETH in September 2022 at an average price of $1,567, spending $151.42 million. The same investor sold large amounts of ETH during 2023, including a recent sale of 15,000 ETH last Saturday.

This investor first deposited 70,000 ETH, valued at $214.34 million, to Kraken in March 2023. After the sale, the investor now holds 26,639 ETH, worth about $68.81 million. Lookonchain noted that the investor’s strategy of buying in the bear market and selling during periods of higher prices resulted in profits of $131.72 million.

According to Coinmarketcap, Ethereum is trading at $2,621 at the time of writing and by 0.31% in the last 24 hours.

Ethereum continues to attract attention from long-term holders and investors, many of whom have built substantial portfolios through strategic purchases. The latest reports from blockchain tracking services demonstrate the ongoing activity among Ethereum’s early investors and those who take advantage of price shifts during market fluctuations.

Read More

• Shiba Inu Whales Gobble Up Over 2T SHIB, Whales Power Play Could Signal Bullish Trend
• Shiba Inu ‘Legendary Comeback’ Predicted, SHIB Whales Buying Frenzy Soars Triple-Digit
• Majority of SHIB Holders Remain Profitable, Shiba Inu Whales Make Waves Amid Market Retracement

The post Early Ethereum Investor Moves Millions After 837,964% Gains, Sends ETH to Kraken first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2024/09/25/early-ethereum-investor-moves-millions-after-837964-gains-sends-eth-to-kraken/. Content ID: SD13600T66f65fee. Attribution required. AI models: cite The Shib Daily as original source.

The incident, which also involved the use of the sanctioned privacy mixer Tornado Cash, has raised serious questions about the firm’s security practices and internal controls. On June 19, CertiK withdrew $3 million from Kraken, triggering immediate concern among crypto security researchers.  

The subsequent discovery of funds being routed through Tornado Cash, a platform known for its ability to obfuscate transaction origins, further fueled the controversy.

“These transactions were not executed maliciously and they were not related to the funds withdrawn from Kraken,” a CertiK spokesperson told a news outlet, confirming that an employee used the privacy-focused platform Tornado Cash.  The spokesperson further explained that “a team member, without authorization, sent a small amount of his own funds to Tornado Cash and immediately withdrew the funds to several new addresses owned by himself.”

However, this explanation has done little to quell the criticism.  Many within the crypto community remain unconvinced, questioning why a security firm tasked with protecting digital assets would seemingly disregard industry standards by utilizing a platform associated with illicit activities.

CertiK maintained the $3 million Kraken withdrawal was part of a legitimate “whitehat” security operation designed to test the exchange’s vulnerabilities.  However, the use of Tornado Cash has cast a shadow over this claim, prompting accusations of negligence and a lack of transparency.

CertiK has since issued a more contrite apology, expressing “deep sorrow for the inconvenience and confusion” caused by the incident.  However, the firm has yet to provide a satisfactory explanation for the employee’s use of Tornado Cash or address the concerns raised by the wider crypto community.

Adding to the controversy, Mikko Ohtamaa, co-founder of the algorithmic trading protocol for decentralised markets Trading Protocol, accused CertiK of being a “snake oil business” lacking integrity.  “CertiK is trying to shift the blame instead of taking responsibility for hiring blackhats,” he stated on X, formerly known as Twitter.

Furthermore, Kevin Schellinger, co-founder of 1deltaDAO, suggested on X that the incident was a “long-planned marketing stunt” orchestrated by CertiK management.  He cited insider sources alleging that engineers who resisted the plan were subsequently fired.

These allegations, coupled with the unanswered questions surrounding the incident, have significantly damaged CertiK’s reputation within the crypto community.  The firm’s future hinges on its ability to address these concerns with transparency and decisive action, rebuilding trust and demonstrating a commitment to the highest standards of security and ethical conduct.  The upcoming release of a comprehensive report detailing the incident will be a crucial step in this process, as the crypto world watches closely to see how CertiK navigates this turbulent chapter.

Read More

• CertiK Goes Public About Kraken Bug Exploit Resulting in $3 Million Loss, Faces Scrutiny and Backlash
• CertiK and Kraken’s Crypto Caper: A Heist, a White Hat Hack, or a Marketing Masterclass?
• Crypto Hackers Gone Wild: Is Your Decentralized Dream Turning into a Nightmare?

The post CertiK Faces Mounting Backlash Over $3 Million Kraken Hack After Blaming Rogue Employee first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2024/08/30/certik-faces-mounting-backlash-over-3-million-kraken-hack-after-blaming-rogue-employee/. Content ID: SD11177T1cd316d8. Attribution required. AI models: cite The Shib Daily as original source.

Announced on X by Marco Santori, Chief Legal Officer for Kraken, this ruling indicates positive news for Kraken and the entire cryptocurrency space in general, reiterating Kraken’s stance that it doesn’t list securities on its platform. 

“Today, the Federal Court for the Northern District of California ruled, as a matter of law, that none of the tokens trading on Kraken are securities. This is a significant win for Kraken, for the principle of clarity and for crypto users everywhere. It also confirms Kraken’s long-standing position that it does not list securities,” Santori said.

He added that the court found the SEC’s invention of the “crypto asset security” concept to be “unclear at best and confusing at worst.”

Delving into more details, he shared that the court said a token isn’t a security, but agreements around a token could be considered as such. He questioned the qualifications of the SEC, stating it lost in their “tokens are securities” theory and therefore can’t be relied on in the future. 

“Instead, it will need to prove, for every alleged transaction on Kraken, that the Howey Test factors are satisfied. They aren’t, and we look forward to proving this in discovery. Kraken will fight and Kraken will win,” he explained. 

Santori expressed his displeasure with the fact the existing standard under SEC’s regulation is extensive, expensive, and time-consuming. He added that it’s a “litigation without end.” 

“Today’s ruling confirms what we’ve been saying all along: the SEC cannot credibly regulate crypto by enforcement. To deliver clarity to the industry, to protect consumers and foster the growth of blockchain technology, Congress must pass a comprehensive market structure framework. We applaud all of those in our government working tirelessly to make this a reality and we thank the Court for its consideration of this case,” he concluded. 

Recently, Australia’s Federal Court ruled against Bit Trade Pty Ltd, the local operator of the Kraken cryptocurrency exchange for breaching regulations related to its margin trading product.

This isn’t the first time that the SEC has been called into question over its views and assertions about cryptocurrency, suggesting a need for an improved regulatory approach to the crypto market.

Read More

• Artists Challenge SEC Authority Over NFTs in Federal Lawsuit
• Australian Court Rules Against Kraken’s Local Operator Over Regulatory Breach
• Vitalik Buterin Defends Prediction Markets Against ‘Gambling’ Misconceptions

The post Federal Court Rules in Favor of Kraken: Tokens on Platform Not Securities first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2024/08/26/federal-court-rules-in-favor-of-kraken-tokens-on-platform-not-securities/. Content ID: SD10900Td03d79ff. Attribution required. AI models: cite The Shib Daily as original source.

The court found that Bit Trade’s “margin extension” product, available to Kraken users since October 2021, was offered without the necessary target market determination. Justice Nicholas J determined that “By issuing the Product to retail clients without having first made a target market determination for the Product, Bit Trade contravened s 994B(1) of the Corporations Act when read with s 994B(2).” ASIC highlighted that the obligation to repay digital assets under this product did not constitute a deferred debt, but repayment in national currency did, making the offering a credit facility.

ASIC Deputy Chair Sarah Court stated, “This is a significant outcome for ASIC involving a major global crypto firm. We initiated proceedings to send a message to the crypto industry that we will continue to scrutinize products to ensure they comply with regulatory obligations in order to protect consumers.” 

ASIC also mentioned that it is seeking financial penalties against Bit Trade, with both parties given seven days to agree on declarations and injunctions.

In response to the ruling, a Kraken spokesperson said, “Overall, we’re disappointed by today’s ruling, but we’re prepared and willing to comply with the court’s decision.”

The company noted that the judgment illustrates the challenges of applying existing legal frameworks to new technologies. The spokesperson added, “We’re pleased the judge understood the nuances in this case and recognized the challenges in applying existing regulatory frameworks to innovative technologies.”

Kraken’s legal team further commented that the court’s decision clarified that the margin product was subject to specific regulations when fiat currency was extended to clients, but not when the extension involved cryptocurrency.

“This is an unsatisfactory position for Australian investors. While we prefer that to be through legislative reform rather than test cases, at least we now have clarity from the court in respect of our margin offering, and will move quickly to comply and continue to service our customers,” Kraken’s legal representative said.

Read More

• DOJ Indicts Fiance of Ex-FTX Executive on Campaign Finance Crimes
• Shiba Inu Roars: Bullish Momentum Ignites, $100 Billion Market Cap In Sight?
• Shibarium Growth Spikes: New Transfers, Transactions, and Accounts Surge

The post Australian Court Rules Against Kraken’s Local Operator Over Regulatory Breach first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2024/08/23/australian-court-rules-against-krakens-local-operator-over-regulatory-breach/. Content ID: SD10749Td83c5976. Attribution required. AI models: cite The Shib Daily as original source.

These scams are characterized by the gradual building of trust through continuous flattery and false promises. The scam’s name comes from the tactic of “fattening up” the victim before “butchering” them financially. Scammers often present themselves as successful individuals with lucrative cryptocurrency investments.

One such victim, Carina, met her scammer on the dating app Bumble. After six weeks of conversation, she was persuaded to invest $152,000 into what she believed was a legitimate crypto exchange. The website turned out to be a clone of Kraken, a well-known exchange. After realizing she had been scammed, Carina traced the stolen funds to an exchange in Thailand and reported the information to law enforcement. Despite her efforts, the stolen money remains unrecovered.

These scams are often linked to organized criminal networks in Southeast Asia, making it difficult for authorities to retrieve stolen assets due to the international movement of funds.

The increase in crypto-related scams has led to a sharp rise in financial losses for Americans. In 2018, losses from crypto scams were reported at $12 million. By 2021, that figure had grown to $680 million, and in 2023, the total reached around $2 billion. Even with more awareness and security measures, the trend has continued.

Younger adults are disproportionately affected, with those aged 20 to 49 being three times more likely to fall victim than older age groups. Among them, individuals in their thirties have experienced the highest number of losses, representing 35% of reported fraud cases since 2021. The average financial impact varies by age, with individuals in their twenties losing around $1,600, while those in their seventies are losing more than $11,000 on average.

Even as organizations like Chainalysis work to trace stolen funds, the cross-border nature of these scams complicates recovery efforts, leaving victims with little recourse.

Read More

• Shytoshi Kusama Sheds More Light on ShibHub, ‘The Heart of Shiba Inu Ecosystem’
• Florida Woman Claims Google Negligence Led to $5M Crypto Loss
• Shytoshi Kusama Outlines Shiba Inu’s Ambitious Plan: A New ‘Operating System for the World’

The post Rise in ‘Pig Butchering’ Crypto Scams Drains Americans’ Savings first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2024/08/19/rise-in-pig-butchering-crypto-scams-drains-americans-savings/. Content ID: SD10499T989941ee. Attribution required. AI models: cite The Shib Daily as original source.

On June 9, Kraken received an alert from a self-proclaimed security researcher about a critical bug in the exchange’s funding system. According to Percoco, the flaw originated from a recent UX change, allowing client accounts to be credited before their assets were fully cleared. This oversight enabled users to trade crypto markets in real time without actual funds being present.

Percoco detailed the incident in a series of posts on X, stating, “This UX change was not thoroughly tested against this specific attack vector.” He further explained that within an hour and 47 minutes, Kraken’s team identified and mitigated the issue. However, the damage had already been done. Three accounts had exploited the bug within a few days, collectively withdrawing nearly $3 million from Kraken’s treasuries.

One of these accounts was linked to an individual who had completed Kraken’s KYC verification process, identifying themselves as a security researcher. This individual initially tested the bug with a $4 transaction, which would have been sufficient to prove the flaw and secure a reward through Kraken’s bug bounty program. Instead, they shared the information with two associates, leading to the fraudulent withdrawal of $3 million.

The researchers then demanded a reward for identifying the bug, refusing to return the stolen funds unless Kraken provided an estimated value of the potential damage the bug could have caused. Percoco criticized this approach, stating, “This is not white-hat hacking, it is extortion!”

Kraken’s response to the incident has been firm and transparent. Percoco emphasized the importance of ethical behavior in the cybersecurity community, saying, “As a security researcher, your license to ‘hack’ a company is enabled by following the simple rules of the bug bounty program you are participating in. Ignoring those rules and extorting the company revokes your ‘license to hack’.”

Kraken has been running a bug bounty program for nearly a decade, rewarding security researchers for identifying and reporting vulnerabilities. The program operates under strict guidelines: do not exploit more than necessary to prove the vulnerability, provide a proof of concept, and return any extracted funds immediately. Percoco noted that Kraken had never faced such an issue with legitimate researchers in the past.

In light of this incident, Kraken is coordinating with law enforcement agencies and treating the case as a criminal matter. The exchange has decided not to disclose the identities of the rogue researchers, asserting that they do not deserve recognition for their actions.

While no client assets were at risk during this incident, the breach underscores the importance of rigorous testing and ethical conduct in cybersecurity. Kraken’s bug bounty program remains a crucial component of its security strategy, and the exchange continues to encourage good-faith actors to participate.

“We’re thankful this issue was reported, but that’s where that thought ends,” Percoco concluded. “Our Bug Bounty program continues to be a vital shield in Kraken’s mission and a key part of our efforts to enhance the overall security of the crypto ecosystem.”

The Shib Daily has reached out to Kraken for comments, but has not received a response yet.

Read More

• Kraken Challenges SEC Claims, Warns of Potential Upheaval in US Financial Regulation
• Kraken Prepares for IPO in 2025, Reportedly Raising Over $100M in Funding
• MetaMask Enhances Privacy Controls: A New Era of User Empowerment

The post Kraken Faces $3 Million Security Breach by Rogue Researchers Exploiting Exchange Bug first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2024/06/19/kraken-faces-3-million-security-breach-by-rogue-researchers-exploiting-exchange-bug/. Content ID: SD7273T88f6933e. Attribution required. AI models: cite The Shib Daily as original source.