The U.S. Securities and Exchange Commission (SEC) has filed a lawsuit against cryptocurrency firm Consensys, accusing them of operating as an unregistered broker for their MetaMask swaps service. The SEC also claimed that Consensys failed to register the offer and sale of securities through their crypto staking programs, which allow users to lock up tokens in exchange for yield.
According to the complaint filed in U.S. District Court in Brooklyn, New York, Consensys collected over $250 million in fees as an unregistered broker.
Consensys operates the popular MetaMask self-custodial crypto wallet, providing users with the ability to store, buy, send, and swap tokens. In response to the lawsuit, Consensys did not immediately comment on the allegations. In April, Consensys sued the SEC after receiving a notice of an impending enforcement action. The firm claimed that the SEC was attempting to unlawfully regulate ether, the world’s second largest cryptocurrency, through enforcement actions.
On June 19, Consensys announced via social media that the SEC had closed its investigation into the company. However, Consensys stated that they would continue their lawsuit in pursuit of a court ruling that the SEC does not have the legal authority to regulate software interfaces built on the ethereum blockchain.
