Tech
US SEC Sues Blockchain Software Technology Firm Consensys
WASHINGTON: The U.S. Securities and Exchange Commission sued cryptocurrency firm Consensys on Friday, alleging it failed to register as a broker through its MetaMask swaps service.
Consensys also failed to record the offering and sale of certain securities through its crypto staking programs, which allow users to lock up tokens for a certain period of time in exchange for a return, the SEC said.
The regulator said in its complaint, filed in U.S. District Court in Brooklyn, New York, that Consensys had collected more than $250 million in commissions through “its conduct as an unregistered broker.”
Consensys operates the popular self-custodial crypto wallet MetaMask, which allows cryptocurrency owners to store their assets and buy, send, and trade tokens.
Consensys did not immediately respond to a request for comment.
In April, Consensys sued the SEC after the company said it received a formal notification from the agency saying it intended to take enforcement action against the company. In the lawsuit, Consensys alleged that the SEC was attempting to “unlawfully regulate” ether, the world’s second-largest cryptocurrency, through enforcement actions.
Consensys said in a social media post on June 19 that it had received notification that the SEC had closed its investigation into the company. However, the company said it would continue its lawsuit seeking a court ruling that the SEC does not have the legal authority to regulate software interfaces built on the Ethereum blockchain.