Consensys, a cryptocurrency firm, has been sued by the U.S. Securities and Exchange Commission for failing to register as a broker with its MetaMask swaps service. The SEC also alleges that Consensys did not register the offer and sale of certain securities through its crypto staking programs. These programs allow users to lock up tokens for a certain period of time in exchange for yield.
According to the SEC’s complaint filed in U.S. District Court in Brooklyn, New York, Consensys collected more than $250 million in fees through its conduct as an unregistered broker. Consensys is known for operating the popular MetaMask self-custodial crypto wallet, which allows users to store, buy, send, and swap tokens.
Consensys has not yet responded to the lawsuit. Back in April, the firm sued the SEC after receiving a formal notice that the agency intended to bring an enforcement action against them. Consensys claimed that the SEC was trying to unlawfully regulate ether, the world’s second-largest cryptocurrency, through these enforcement actions.
On June 19th, Consensys announced via social media that the SEC had closed its investigation into the company. Despite this, Consensys plans to continue its lawsuit in pursuit of a court ruling stating that the SEC does not have the legal authority to regulate software interfaces built on the ethereum blockchain.