Blockchain security firm CertiK says that it has improved its procedures and tightened its checks after facing criticism last year for auditing a project linked to the illicit Huione marketplace. Ronghui Gu, CEO of CertiK, said that this episode became a turning point for the firm.
What really happened
CertiK audited a stablecoin project last year. However, the project has links to Huione, which is a marketplace for illegal activities. Online critics questioned whether the audit happened and whether CertiK should have done more background checks. Ronghui Gu replied to all the critics that the company has audited the software, which was given by a U.S.-registered client, and later audited fee has been donated to the charity, and treated this backlash as a lesson.
After this incident, Gu said that CertiK strengthened its KYC and screening process by checking clients more carefully, working with outside risk experts, and increasing monitoring of how its audit reports are used. He said that the firm now keeps a “very close eye” even after the auditing is done.
While auditing the crypto projects was the core for CertiK to earn, Gu says that these services must now meet the institution-level standards. Large financial firms want deeper testing and stronger proof that code is safe, and a clear report they can show regulators. So meeting those needs is now the top priority for the firm, he said.
Gu’s reply on public listing
In January, Gu spoke at the World Economic Forum, which has increased speculation about the possible public listing. He says that media reports went too far, and right now there is no plan, but yes, the investors are really interested. Adding on, he said the market still doesn’t know how to value Web3 companies properly.
Gu also warned that risks are changing. Previously Hackers attacked the smart contracts, but right now, many problem arises from private key handling, deepfakes, and price feed manipulation. He says the firm is still researching the solution for the Deepfakes, which is especially very hard.
For CertiK, building trust is more important because large institutions will only work with companies that they believe in. Gu believes that the Huione moment makes the company stronger for the future and forced to upgrade, improve, and prepare for the stricter expectations from global finance.
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