CertiK Eyes IPO Despite Past Controversies Weighing on Investor Confidence

TLDR:

• CertiK announced IPO plans despite facing scrutiny over handling of $3 million Kraken vulnerability exploit.
• The firm’s audit work for Huione Guarantee stablecoin raised concerns about due diligence on client projects.
• Binance became CertiK’s largest investor with multi-eight figure follow-up investment announced in January 2026.
• CertiK joins the wave of crypto IPOs, including Circle, BitGo, with Kraken and Ledger planning offerings this year.

CertiK, a blockchain security firm based in New York, has announced plans to pursue an initial public offering. However, past controversies have weighed heavily on market confidence ahead of the planned listing.

The firm has faced scrutiny over its handling of a roughly $3 million vulnerability at Kraken. Additionally, audit work on a stablecoin project linked to Huione Guarantee raised concerns. 

As crypto-related IPO activity picks up, whether CertiK can regain investor confidence remains to be seen.

Scrutiny Over Security Practices Clouds IPO Plans

The firm’s reputation has suffered from several incidents that contradict its core mission. In 2024, CertiK employees discovered and exploited a roughly $3 million bug at crypto exchange Kraken. 

The company characterized this as a white hat operation designed to test security measures. However, critics questioned why a business built on securing code appeared to break industry standards during the investigation.

The Kraken incident sparked widespread criticism within the crypto community. Industry observers noted that established protocols for responsible disclosure were seemingly ignored. 

This raised fundamental questions about CertiK’s judgment and operational practices. The controversy cast doubt on whether the firm adheres to the ethical standards it promotes.

Adding to reputational damage, CertiK’s X account was compromised in 2024 after an employee fell victim to phishing. 

The breach was particularly embarrassing for a company specializing in security audits. The incident highlighted potential vulnerabilities in the firm’s own internal security protocols.

A 2025 controversy proved even more damaging to market confidence—CertiK audited code for a stablecoin launched by Huione Guarantee, a Cambodian marketplace linked to criminal activity. 

The platform allegedly facilitated money laundering, sold hacking tools, and offered equipment used in forced labor operations. CertiK issued an apology after the work came to light.

IPO Ambitions Face Uncertain Market Reception

Despite these setbacks, CEO Ronghui Gu remains confident about taking the company public. “Taking CertiK public is a natural next step as we continue scaling our products and technology,” he stated during an interview with Acumen Media. 

Gu emphasized that the firm remains focused on strengthening trust, security, and transparency for the Web3 ecosystem.

The timing coincides with robust crypto IPO activity across the sector. Circle’s USDC issuer raised $1 billion in its public offering last year. BitGo kicked off 2026 by raising $213 million from investors on Thursday. 

Other firms, including Bullish, Gemini, Galaxy Digital, Figure, and Exodus, also completed successful offerings recently.

Major crypto companies continue lining up public offerings for later this year. Kraken, Ledger, Consensys, and Aminoca Brands have all announced plans for IPOs. 

The surge reflects growing institutional interest in cryptocurrency companies. However, CertiK faces a steeper climb than competitors, given its controversial track record.

The firm has raised $296 million since its 2018 founding and achieved a $2 billion valuation by 2022. Investors include Binance, SoftBank Vision Fund 2, Tiger Global, Sequoia Capital, and Goldman Sachs. 

On January 6, CertiK announced a strategic partnership with YZi Labs. According to Gu, Binance recently made an eight-figure follow-up investment, becoming the firm’s largest investor.

Whether other institutional investors share Binance’s confidence remains the critical question. The controversies have created substantial hurdles that CertiK must overcome to attract public market capital. 

The firm needs to demonstrate improved governance and ethical standards before investor confidence can be restored.