Breaking: SEC Sues ConsenSys For Conducting Securities Via MetaMask

The U.S. Securities and Exchange Commission (SEC) has filed a lawsuit against ConsenSys Software Inc., alleging that the company has been operating as an unregistered broker and engaging in the unregistered offer and sale of securities through its MetaMask platform. The SEC’s complaint focuses on two key aspects of ConsenSys’ operations: MetaMask Swaps and MetaMask Staking.

The SEC claims that since October 2020, ConsenSys has acted as an unregistered broker of crypto asset securities through its MetaMask Swaps service, which allows users to exchange various cryptocurrencies and tokens. Additionally, the complaint alleges that since January 2023, ConsenSys has been offering unregistered securities in the form of crypto asset staking programs through its MetaMask Staking service.

The regulatory body argues that by operating these services without proper registration, ConsenSys has deprived investors of crucial protections afforded by federal securities laws. The SEC claims that ConsenSys has collected over $250 million in fees through its unregistered broker activities.

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