SEC Files Lawsuit Against Consensys, Accuses Firm of Unregistered Securities Operations
Summary:
The American Securities and Exchange Commission (SEC) has accused Consensys, the parent company of MetaMask, of operating as an unregistered broker and engaging in unauthorized sale of securities since 2020. The firm allegedly accumulated over $250 million in fees through unregulated crypto transactions, bypassing vital investor safeguards. The SEC is seeking a permanent injunction and civil penalties against Consensys for these reported federal securities law violations.
The American regulatory body Securities and Exchange Commission (SEC) has filed legal action against Consensys, the parent company of MetaMask. The complaint issued on the 28th of June, accuses the firm of functioning as an unregistered broker since 2020, and of participating in the unregulated sale and offer of securities via MetaMask. Consensys is alleged to have accrued over $250 million in fees stemming from unregistered crypto asset transactions and staking services, thereby bypassing critical investor protections. The SEC is requesting a permanent injunction, civil penalties, and other compensatory measures against Consensys for these purported infractions of federal securities regulations. The complaint asserts that "Since January 2023, Consensys has engaged in the unregistered offer and sale of securities in the form of crypto assetstaking programs, and acted as an unregistered broker, through its MetaMask Staking service. By itsconduct as an unregistered broker, Consensys has collected over $250 million in fees." Furthermore, the regulator contends that Consensys, by enabling investment activities in Lido and Rocket Pool's staking programs, has acted as a go-between in unregistered transactions, thereby denying investors essential safeguards. This report is evolving, and additional details will be incorporated as they emerge.
Published At
6/28/2024 8:17:12 PM
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