Finance

SEC Sues ConsenSys Over MetaMask Staking and Brokerage

Jun 28, 2024 1 min read

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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. According to the SEC, since 2016, ConsenSys has facilitated the brokerage of over 36 million transactions, generating more than $250 million in fees without the necessary registrations, thereby bypassing essential investor protections mandated by federal securities laws.

The lawsuit also contends that ConsenSys has offered unregistered securities through its staking services, including MetaMask Staking, Lido, and Rocket Pool. The SEC claims these programs were marketed as investment contracts, which should have been registered as securities. ConsenSys has defended its actions, arguing that regulatory overreach and inconsistent regulatory positions have negatively impacted the industry. The SEC is seeking a permanent injunction, civil penalties, and other equitable relief against the company.

#lawsuits #sec #tech #altcoins #ethereum #cryptocurrency

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