The U.S. Securities and Exchange Commission (SEC) has sued Ethereum infrastructure provider Consensys for allegedly failing to register key services offered through its MetaMask wallet.
This follows a Wells notice issued to Consensys two months prior. The SEC claims Consensys engaged in the unregistered sale of securities via its MetaMask Staking service, involving unregistered securities from liquid staking providers Lido and Rocketpool.
Additionally, the MetaMask Staking and Swaps services are accused of functioning as unregistered brokers, providing investment information, facilitating trades, and collecting substantial fees.
Gurbir S. Grewal, Director of the SEC’s Division of Enforcement, stated that Consensys deprived investors of federal securities law protections.
Although the SEC recently concluded an investigation into Consensys regarding Ethereum 2.0, Consensys had already filed a lawsuit seeking a court ruling that its services do not violate securities laws.
Uniswap Labs and Coinbase have faced similar SEC scrutiny, with Coinbase’s wallet-related allegations dismissed in court. Consensys criticized the SEC’s lawsuit as regulatory overreach and vowed to pursue its case in Texas, emphasizing its importance for the future of web3.
Image Credit: Pixabay
Keep in mind that we may receive commissions when you click our links and make purchases. However, this does not impact our reviews and comparisons. We try our best to keep things fair and balanced, in order to help you make the best choice for you.
