SEC Closes Ethereum Security Investigation per Consensys

The SEC has closed its investigation into Ethereum 2.0, concluding that sales of ETH are not securities transactions, following a June 7 letter from Consensys seeking clarity after the approval of ETH ETFs classified ETH as a commodity. Consensys announced this as a major victory for Ethereum developers and the broader crypto industry.

This decision aligns with the Commodity Futures Trading Commission's stance. Consensys continues its legal battle against the SEC for further regulatory clarity, arguing that the SEC's enforcement actions have been overly aggressive and unlawful. In particular, the next step in the fight is to prove that MetaMask Swaps and Staking don't violate securities laws.

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CertiK Exploits Kraken For $3M and Declines Bounty Reward

Blockchain security firm CertiK discovered a vulnerability in Kraken's deposit system, leading to the unauthorized transfer of nearly $3 million from Kraken’s wallets. The flaw allowed deposits without completing the transaction, which has now been fixed. Kraken's Chief Security Officer, Nick Percoco, claimed that three individuals exploited the bug.

CertiK stated that the flaw could have allowed millions in fabricated crypto to be withdrawn and converted. After identifying the issue and engaging in discussions with Kraken, CertiK alleged Kraken threatened its employees to repay a faulty amount of crypto within an unreasonable six-hour window. CertiK is now transferring the disputed funds back to Kraken.

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LayerZero Opens Eligibility Checker For ZRO Token Airdrop

LayerZero released the eligibility checker for the ZRO token airdrop. Users can verify their eligibility and review their activity, such as volume and transaction count. CEO Bryan Pellegrino revealed that 1.28 million wallets qualify for the airdrop, with 23.8% of the total 1 billion token supply allocated for the community, and an 8.5% first-day distribution.

The remaining tokens will be distributed over 36 months with annual retroactive distributions and proposals for builders. The airdrop hinted for June 20, 2024, is being safeguarded by anti-Sybil measures, including a bounty hunter program and a self-reporting system to prevent unfair token allocation, which the protocol is accused of.

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ZachXBT Exposes TrumpCoin Creator as Martin Shkreli

Blockchain investigator ZachXBT determined that Martin Shkreli, sentenced in 2018 for securities fraud, is the deployer of TrumpCoin (DJT), initially linked to Donald Trump. This revelation came after Arkham Intelligence offered a $150,000 bounty for the DJT deployer's identity. Shkreli confirmed his involvement, claiming he made the token with Barron Trump.

ZachXBT also exposed that insiders exploited the Trump rumor to offload $832,000 worth of DJT tokens. Another insider, Cameron Roxborough, who administered DJT’s Telegram and was active on Shkreli’s Discord, left both platforms following the revelation. Shkreli, on parole since 2022, is required to avoid self-employment involving client money.

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Data of the Day

According to CryptoQuant, we are just entering the altcoin season as Ether's Market Value to Realized Value (MVRV) is rising faster than BTC MVRV, suggesting the ETH market is heating up relative to its on-chain fundamentals. Given the current ETF situation, this might be an ETH-only season. Historically, when ETH surges, other alts tend to follow.

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More Breaking News

• EigenLayer Phase 2 claims are live with a snapshot taken at the same time as Phase 1 on Block 19437000 on March 15, 2024.
• Linea officially announced that it will open Linea Park LXP minting on June 20, after a delay due to 'anti-witch' efforts to reduce bots.
• Bitcoin ETFs saw net outflows of $152.4 million on Tuesday, marking four consecutive days of negative flows totaling $714.4 million.
• The Bitcoin network recorded a decline in its average block size and transaction rates, coinciding with a fall in price to around $64,100.
• Stablecoin transfers have increased more than 16x over the past four years, a promising metric of mass cryptocurrency adoption.

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