SEC Files Lawsuit Against Consensys, Developer of MetaMask

posted  29 Jun 2024
Photo - SEC Files Lawsuit Against Consensys, Developer of MetaMask
The U.S. Securities and Exchange Commission (SEC) has filed a lawsuit against Consensys, accusing the company of violating federal securities laws.

The lawsuit alleges that Consensys is operating as an unregistered broker of cryptocurrency securities through the services Metamask Swaps and Metamask Staking.

The SEC claims that the company is engaged in the unregistered offering and sale of securities in the form of cryptocurrency staking programs, collecting over $250 million in fees.

The complaint specifically mentions that the offering and sale were conducted for issuers like Lido and Rocket Pool, which provide liquid staking programs. Following the news, the tokens of these projects, particularly LDO, saw significant price drops, with LDO falling over 15% in a day.

Consensys has already responded to the lawsuit, stating that the SEC is pursuing an anti-cryptocurrency agenda accompanied by special enforcement measures.
This is just the latest example of its regulatory overreach—a transparent attempt to redefine well-established legal standards and expand the SEC’s jurisdiction via lawsuit. We are confident in our position that the SEC has not been granted authority to regulate software interfaces like MetaMask,
Consensys wrote on its blog.