The Securities and Exchange Commission (SEC) has initiated legal action against Consensys Software Inc., alleging multiple violations of federal securities laws related to its MetaMask services. According to the SEC, since 2016, Consensys has not only failed to register as a broker but also neglected to register the offering and sale of certain securities, impacting investor protections significantly.

As per the complaint, filed in the Eastern District of New York, Consensys has operated as an unregistered broker since October 2020 through its MetaMask Swaps service. Furthermore, starting January 2023, the company reportedly engaged in unregistered securities offerings via its MetaMask Staking service. These actions have allegedly deprived investors of crucial legal safeguards.

The SEC’s lawsuit highlights that through these unregistered activities, Consensys has amassed over $250 million in fees. The Commission seeks to enforce securities laws strictly to ensure compliance and protect investor interests in the rapidly evolving crypto asset market.

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