SEC Sues ConsenSys Over MetaMask Staking, Broker Allegations

The U.S. Securities and Exchange Commission sued Ethereum software provider ConsenSys over its MetaMask service Friday, alleging the wallet tool was an unregistered broker that "engaged in the offer and sale of securities."

MetaMask also offered an unregistered securities program through its staking service, the SEC alleged in a filing in the courthouse in the Eastern District of New York.

The SEC alleged in its lawsuit that it offered staking services for Lido and Rocket Pool as investment contracts, meaning they are also unregistered securities.

"Consensys has collected over $250 million in fees," the SEC alleged.

Friday's lawsuit comes just weeks after ConsenSys announced the regulator had ended investigations into the company tied to Ethereum, citing two letters the SEC sent it.

Those letters from June 18 did caution that the SEC might still bring enforcement actions tied to other issues. Neither letter mentioned MetaMask.