Bitcoin's Block Size Hits Yearly Low Amidst Kraken-Certik Dispute; SEC Halts Ethereum Investigation
Summary:
Kraken and Certik are engaged in a public dispute over a bug bounty collection attempt involving allegations of criminal activity. The average block size of Bitcoin hit a yearly low on June 7, indicating a decline in activity. The SEC's Enforcement Division has halted its investigation into whether Ethereum is a security, a move hailed as a significant victory for the crypto sector. Meanwhile, Hashdex is preparing to launch a collective Bitcoin and Ether fund, pending regulatory approval.
Kraken, a cryptocurrency exchange platform, and Certik, a research entity, are in a contentious situation over a bug bounty collection attempt, with criminal accusations being thrown around on social platforms. Bitcoin's average block size reached its lowest point of the year on June 7. A significant advancement for cryptocurrency is the Enforcement Division of the SEC ceasing its investigation into whether Ethereum holds the status of a security. Simultaneously, Hashdex is gearing up to roll out a collective Bitcoin and Ether crypto investment basket, pending regulatory approvals in the United States.
The scenario appears to have unfolded as follows: Certik identified itself publicly as the entity behind a disputed bug bounty associated with Kraken. As per Kraken's version of events, the company opted not to identify Certik by name and claimed that the group exploited several accounts leading to a loss of $3 million. Kraken asserts that Certik representatives approached its bug bounty team to claim an award but had already disclosed the exploit to two other parties that used the information to withdraw funds, which the exchange says have not been restored. On the other hand, Certik alleges that it was “threatened” by Kraken and was asked to return an "incongruous" sum. Certik also maintains that it intends to restore the funds to an account accessible to Kraken.
In the meantime, Bitcoin's blockchain activity has experienced a notable slump, with the average block size and transaction rates both sharply declining, coinciding with a drop in Bitcoin's price to approximately $64,100. Less activity is indicative of diminished profitability for miners due to reduced block rewards post-Bitcoin halving.
In a significant development for Ethereum, the SEC's Enforcement Division will abandon its investigation into whether the digital currency counts as a security. This, according to Ethereum developer Consensys, implies that there won't be any legal action suggesting the sales of Ethereum are considered securities transactions, marking a significant victory for Ethereum developers, tech providers, and industry players.
Lastly, Hashdex has submitted an application to the SEC for a combined Bitcoin and Ether Exchange Traded Fund, in what could become another significant stride for the crypto landscape.
Published At
6/19/2024 10:23:37 PM
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