ConsenSys, a prominent blockchain technology firm, is facing legal action from the U.S. Securities and Exchange Commission (SEC) concerning its MetaMask crypto wallet. The SEC alleges that since 2020, ConsenSys has operated unlawfully as a broker, selling unregistered securities through MetaMask.

The SEC claims ConsenSys generated over $250 million in fees by facilitating digital asset transactions and offering staking services without required legal registrations. These activities allegedly deprived investors of essential protections typically provided by regulated services. Consequently, the SEC seeks civil penalties, a permanent injunction, and other legal remedies against ConsenSys.

Central to the lawsuit is ConsenSys' alleged brokerage activities through MetaMask's staking service, which reportedly commenced in January 2023. This service enabled ConsenSys to collect substantial fees. Additionally, the SEC accuses ConsenSys of facilitating investments in unregistered staking programs from entities like Lido and Rocket Pool, further exposing investors to risks without adequate regulatory oversight.