Cryptocurrency company ConsenSys has been added to the SEC’s target list as the SEC continues its industry-wide crackdown.
The U.S. Securities and Exchange Commission filed a lawsuit against ConsenSys in federal court in Brooklyn, New York on Friday, alleging that the company “engaged in the offer and sale of securities” and “acted as an unregistered broker” through a digital asset wallet called “MetaMask.”
“ConsenSys violated federal securities laws by failing to register as a broker and by failing to register the offer and sale of certain securities.” Court filings Assert.
Blockchain software company ConsenSys filed its own lawsuit in Texas in April, seeking to preempt the SEC’s actions, accusing it of abusing its regulatory powers. The 10-year-old company said the lawsuit follows three subpoenas and a Wells Notice issued last year by the SEC alleging that ConsenSys violated federal securities laws.
So far this year, the SEC has served notices, filed lawsuits or settled charges against a number of cryptocurrency companies focused on Ethereum and decentralized finance, including ShapeShift, TradeStation and Uniswap. Reportedly We are investigating the Ethereum Foundation.
Just two weeks ago, ConsenSys claimed victory in its battle with the SEC.
“The SEC’s Enforcement Division has informed us that it has concluded its investigation into Ethereum 2.0 and will not pursue enforcement actions against ConsenSys,” the company said in a statement. June 18.
In an emailed statement on Friday, a ConsenSys spokesperson said the action was part of the SEC’s “anti-cryptocurrency agenda.”
“This is just the latest example of regulatory overreach and a clear attempt to redefine established legal standards and expand the SEC’s jurisdiction through litigation,” the company said. “We remain confident in our position that the SEC is not empowered to regulate software interfaces like MetaMask.”
“We continue to defend our litigation in Texas and the new lawsuit in New York,” the spokesperson added.